03/25/2008
Below, you will find an update on some of the hot issues of the legislative session.
Healthcare
The House of Representatives on Monday debated the House Substitute for Senate Bill 81, a comprehensive healthcare bill. The bill is a result of a number of hearings on numerous related bills, the 21 recommendations of the Kansas Health Policy Authority and talks between the House Democratic and Republican caucuses.
Key provisions of SB 81 include the following:
Optional premium-only plans (POPs): The bill initially said employers who provide health insurance coverage (any portion of the premium is payable by an employee) must offer a premium-only cafeteria plan, which would let employees the benefits they receive. The compromise removes the mandate from employers but gives them the option of offering a POP.
The compromise bill requires insurers who offer group health insurance to also provide the option of establishing a POP. The goal of this legislation is to increase awareness of these types of plans to all businesses.
Deferred action on individual (sole proprietor) income tax modification: The original bill called for income tax credits for individuals (sole proprietors) for amounts paid for health insurance or care in the form of a health benefit plan or health savings account.
The compromise calls for an interim study of the issue this summer and fall.
Study whether to redefine very small groups: The original bills called for including individuals in the very small group market. NFIB strongly opposed this measure, pointing out that the concept would result in large rate increases for the very small group market.
The compromise bill removed this language and, instead, calls for an interim study of the issue.
Review plan to extend dependency age to 26: The issue was met with objection from that it would only expose small employer groups to potentially serious claims with no additional premium to pay for the losses.
The compromise bill removed this language and instead, calls for an interim study of the issue.
Illegal immigration
It appears that immigration will come up for debate on Wednesday in the Senate and on Thursday in the House. NFIB has been involved in several meetings within the past few days in which legislators are raising concerns about requiring small businesses to use a federal program to verify a job applicant’s legal status.
Going into the debate this week, NFIB continues to inform legislators that we do not condone the hiring of illegal immigrants. However, we must have complete assurances that small businesses are not severely penalized for making honest, unintentional mistakes. The business licenses of our "good actors" should not be put in jeopardy due to the acts of a few, bad actors.
Workers' compensation insurance
The chairman of the House Commerce and Labor Committee has pocket-vetoed a bill stemming from the state Supreme Court's decision in the case of Alejandro Casco, the sausage maker who hurt one arm then favored his other arm, resulting in both arms becoming injured. The question before the courts was whether his case should be treated as two scheduled injuries or as a whole bodily injury. Benefits paid out for whole bodily injuries are significantly higher than those for scheduled injuries.
The bill, pocket-vetoed by Committee Chairman Steve Brunk, was backed by organized labor. It would have clarified existing state law. The pocket-veto means Brunk has refused to even schedule a hearing for debate of the bill. Supports of the bill attempted to bring the measure up for debate in the House last week, but the procedural motion failed on a near party-line vote.
NFIB continues to oppose legislation that would result in increasing the cost of workers' compensation insurance premiums. Legislators such as Rep. Brunk should be applauded for understanding the issue and continuing to support small business.
Thanks for your continued support!
