Changes to Kansas Health Care Stabilization Fund
We would like to take the opportunity to inform you of changes to the Kansas Health Care Stabilization Fund that will impact your clients’ policies effective January 1, 2022.
On May 19, 2021, Governor Laura Kelly signed into law House Substitute for Senate Bill No. 78. The new statute requires defined health care providers to obtain a base policy from an insurer with limits of no less than $500,00 per claim, $1,500,000 in the aggregate. The new statute also allows (but doesn’t require) a second option to be offered of $1,500,000 per claim and $4,500,000 aggregate. All defined health care providers must carry base limits of $500,000/$1,500,000 coverage when obtaining a new policy or when renewing their basic coverage on or after January 1, 2022.
The bill also changes the available Fund limit options for newly enrolled health care providers and for policies renewing on or after January 1, 2022. In addition, the new law changes the current three options that are offered by the Stabilization Fund to just two options as shown below:
Current Health Care Stabilization Fund options available through December 31, 2021:
Option 1: $100,000/$300,000
Option 2: $300,000/$900,000
Option 3: $800,000/$2,400,000
Health Care Stabilization Fund options available effective January 1, 2022:
Option 1: $500,000/$1,500,000
Option 2: $1,500,000/$4,500,000
Further details on the legislative changes as well as the requirements for Fund qualified health care providers can be found on the Kansas Health Care Stabilization Fund website.
Please reach out to Beth Smoller with any questions or concerns.