(Nov. 4, 2026) – Health Care Stabilization Fund Oversight Committee Meets
The Health Care Stabilization Fund Oversight Committee met on Nov. 4 to discuss last session's addition of APRNs, pharmacists, and optometrists to the fund and to review the actuarial report.
The actuarial report highlighted rising cost pressures. From 2019 to 2025, claim costs outpaced CPI inflation by a factor of two. Hospital rate inadequacy stands at 28 percent, and the Board of Governors recommends a 12 percent increase effective Jan. 1, 2027. Separately, the actuary recommends an 11.2 percent rate increase in calendar year 2027 to keep unassigned reserves at the expected year-end CY 2026 level of roughly $23 million. One bright spot: after eight years of sizable transfers to the availability fund from surcharge revenue, this year is the first in which no transfer is needed.
Investment authority was a recurring theme. House Bill 2770, carried last year by Rep. Helgerson to improve the fund’s investment options and interest earnings, died after being introduced in the appropriations committee. The actuary noted that a 10-basis-point increase in the assumed rate of return would reduce the CY 2027 indication by 1.3 percent.
The fund's attorney reported that claim volume was lower this year, but average settlements were higher. More cases are also resolving in the primary coverage layer before reaching the fund. Kurt Scott, CEO of KAMMCO, added that adult care facilities have been unable to obtain coverage in the open market since 2020 and now rely on the plan. Since 2021, these facilities, particularly skilled nursing facilities, have accounted for 70 percent of claim expenses while representing only 13 percent of membership, driving premium increases. Regarding adding providers, Scott stated that bringing APRNs into the fund would, over time, lower providers' cost risk. KHA and the Kansas Medical Society also provided joint comments reinforcing the importance of the fund.
Final recommendations:
Jerry Slaughter, seconded by Sen. Blasi, moved the committee recommend to the legislature:
- Support legislation broadening the fund's investment opportunities, similar to last year's HB 2770.
- Hold the fund's money in trust.
- Allow the Health Care Stabilization Fund to seek opinions from other actuaries.
- Continue the oversight committee.
Sen. Blasi also moved, with Slaughter seconding, that a bill similar to HB 2770 be drafted and introduced before the Senate Financial Institutions and Insurance Committee.
Dennis George recommended the committee review the option language regarding the fund's ability to offer $1.5 million in coverage.