Regulatory Compliance
Kansas
CorVel helps reduce workers’ compensation costs through immediate intervention, claims management, medical treatment plans, return to work programs, medical bill review, preferred provider savings and patient management. Our cost containment solutions are based on a simple formula that combines industry leading bill review, case management expertise and a national PPO built for the casualty market. Each innovation offers Kansas employers improved return to work outcomes and industry leading savings.
CorVel specializes in applying advanced communication and information technology to improve disability management for Kansas employers. Our proprietary solutions can be tailored to your specific state risk management program.
Kansas Regulatory Updates 4/11/2024
SB 28 – Discontinuing Payments to Certain Group-Funded Insurance Pools, Refunding Existing Balances Thereof and Abolishing Such Funds and Establishing the Group-Funded Pools Refund Fund.
Issues: Workers’ Compensation (General)
Summary For 04/14/2023:
This measure establishes the group-funded pool refund fund. Money in the group-funded pools refund fund shall be used only for the purpose of refunding entities that have paid into the group-funded pools fee fund, refunds shall be distributed on a pro-rata basis, based upon premium taxes paid by each entity in the 2022 fiscal year.
This measure requires that on 7/1/2023 the director shall transfer all money in the group-funded pools fee fund to the group-funded pools refund fund, all liabilities of the group-funded pools fee fund and the group-funded workers’ compensation fee fund will be transferred to the group-funded pools refund fund, and the group-funded pools fee fund and the group-funded workers’ compensation fee fund will be abolished on 7/1/2024.
Most Recent Update:
03/19/2024: On March 19 the Senate appointed Senator Billinger, Senator Claeys, and Senator Pettey to the conference committee to replace previous members.
This measure will be sent to a conference committee. In Kansas, conference committees are rather informal. The Committee consists of three members of each chamber and are limited to considering only matters which have been included in the bill in conference or in bills which have been passed in one or both houses during the current biennium. Once the conference committee agrees upon the content of a bill, which may include amendments, it is presented to both chambers for consideration. This report is either adopted or rejected.
Additional Outlook: This measure has been introduced at the request of the Kansas Insurance Department. The March 14 amendment changed the effective date to be based on publication in the Kansas register, rather than publication in the statute book. The Senate did not concur with this amendment.
SB 338 – Changing Certain Reporting Requirements of Group-Funded Liability and Workers Compensation Pools.
Issues: Workers’ Compensation (General)
Summary For 03/13/2024
This measure extends the amount of time afforded to a workers’ compensation pool to file a certified independent audited financial statement from 150 to 180 days. It also removes the requirement that members leaving the pool notify the commissioner. It takes effect upon publication in the Kansas register.
Most Recent Update:
03/07/2024: On March 7 this measure was passed by the House following amendment. The Senate refused to concur and insisted on a conference committee. The Senate appointed Senator Longbine, Senator Fagg and Senator Holscher as conferees. On March 12 the House appointed Representative Sutton, Representative Penn and Representative Neighbor as conferees.
This measure will be sent to a conference committee. In Kansas, conference committees are rather informal. The Committee consists of three members of each chamber and are limited to considering only matters which have been included in the bill in conference or in bills which have been passed in one or both houses during the current biennium. Once the conference committee agrees upon the content of a bill, which may include amendments, it is presented to both chambers for consideration. This report is either adopted or rejected.
Additional Outlook: The March 4 amendment altered the effective date.
SB 430 – Providing Workers Compensation Act Coverage For the Kansas National Guard, Limiting Benefit Reductions For Retirement Benefits, Increasing Dependents Death Benefits, Reducing Certain Functional Impairment Requirements, Increasing Compensation For Certain Disability Categories and For Treatment Without Authorization, Raising the Evidentiary Standard For Future Medical Treatment, Limiting Certain Procedures For Post-Award Medical Benefit Claims, Allowing Benefit Payment By Funds Transfer or Payment Cards, Establishing Procedures For Neutral Healthcare Examinations, Exchanges and Admission of Medical Reports, Extending Employee Injury Notification Deadlines, Eliminating the Deadline For Motions to Avoid Dismissal For Lack of Prosecution, Providing For Expedited Settlement and Digital Recording of Hearings and Other Changes to the Workers Compensation Act.
Issues: Workers’ Compensation (Medical Marijuana), Workers’ Compensation (General)
Summary For 02/06/2024
This measure makes a suite of changes related to workers’ compensation benefits.
Reducing functional impairment: This measure requires an award of compensation for permanent partial impairment, work disability, or permanent total disability to be reduced by the amount of functional impairment determined to be preexisting to the same physical structure as the body part injured.
Retirement benefits: This measure states if an employee receives retirement benefits under Social Security, any compensation benefit payments for permanent partial disability or permanent total disability that the employee is eligible to receive under the Workers Compensation Act for such claim must be reduced by 50% of the weekly equivalent amount of such retirement benefits but must not be less than the workers’ compensation benefit payable for the employee’s percentage of functional impairment. The reduction in benefits does not apply to temporary total disability compensation or temporary partial disability compensation.
This measure states that if an employee receives retirement benefits from any other retirement system, program, policy, or plan that is provided by the employer against whom the claim is being made, any compensation for permanent partial disability or permanent total disability benefits the employee is eligible to receive under the Workers’ Compensation Act for the claim must be reduced by the weekly equivalent amount of such retirement benefits less any portion of any such retirement benefit that is attributable to payments or contributions made by the employee. Workers’ compensation benefits may not be less than the workers’ compensation benefit payable for the employee’s percentage of functional impairment. The credit allowed does not apply to temporary total disability compensation or temporary partial disability compensation.
Dependent benefits: This measure requires that if an employee leaves any dependents wholly dependent upon the employee’s earnings at the time of an accident or injury, all compensation benefits must be paid to the dependent. Upon a judicial determination of dependency, there must be an initial payment of $60,000 to the surviving legal spouse or a wholly dependent child or children or both.
The maximum amount of compensation benefits payable to all dependents by the employer must not exceed a total of $500,000 and when the total amount has been paid, the liability of the employer for any further compensation to dependents must cease except for the payment of compensation to any wholly dependent child until the latest of the following dates at the weekly rate in effect when the employer’s liability would be terminated: 1) the wholly dependent child, who is not enrolled in high school, becomes 18 years of age; (2) if enrolled in high school, May 30 of the wholly dependent child’s senior year in high school or until the child becomes 19 years of age, whichever occurs first; or (3) the wholly dependent child’s 23rd birthday, if the child is a student enrolled full-time in an accredited institution of higher education or vocational education.
The maximum compensation benefits payable must remain in effect until June 30, 2027. The maximum compensation benefits payable must be adjusted to reflect changes in the state average weekly wage beginning on July 1, 2027, and each July 1 thereafter. To determine the yearly adjustment, the director must determine the percentage of change in the state average weekly wage for the current year as well as the change in percentage in the state average weekly wage for each of the prior four years. The maximum compensation benefits must then be adjusted by the average percentage change.
Permanent disability benefits: This measure states that permanent total disability occurs when the employee: (1) suffers impairment as established by medical evidence and based on the 6th edition of the American Medical Association (AMA) guides to the evaluation of permanent impairment, if the impairment is contained; and (2) suffers a percentage of functional impairment determined to be caused solely by the injury that is equal to or exceeds 10% to the body as a whole or the overall functional impairment is equal to or exceeds 15% if there is a preexisting functional impairment.
If there is an award of permanent disability as a result of the injury there must be a presumption that disability existed immediately after the injury and compensation is to be paid for not to exceed the number of weeks allowed in the following schedule: (1) loss of or loss of use of a scheduled member must be the percentage of a functional employee sustained from the injury as established by medical evidence and based on the 6th edition of the AMA guides to the evaluation of permanent impairment if the impairment is contained; and (2) where an injury results in the loss of or loss of use of more than one scheduled member within a single extremity, the functional impairment attributable to each scheduled but for injuries occurring on and after January 1, 2015, must be combined under the 6th edition of the AMA guides to the evaluation of permanent impairment, and compensation awarded must be calculated to the highest scheduled member impaired.
Maximum compensation benefits: This measure requires the maximum compensation benefits payable by an employer to not exceed the following: (1) for permanent total disability, including temporary total, temporary partial, permanent partial and temporary partial disability payments paid or due is $400,000 for an injury; (2) for temporary total disability, including any prior permanent total, permanent partial, or temporary partial disability payments paid or due is $225,000 for an injury; (3) for permanent or temporary partial disability, including any prior temporary total, permanent total, temporary partial, or permanent partial disability payments paid or due is $225,000 for an injury; and (4) for permanent partial disability, where functional impairment only is awarded, $100,000 for an injury and applies whether or not temporary total disability or temporary partial disability benefits were paid.
The maximum compensation benefits payable must remain in effect until June 30, 2027. The maximum compensation benefits payable must be adjusted to reflect changes in the state average weekly wage beginning on July 1, 2027, and each July 1 thereafter. To determine the yearly adjustment, the director must determine the percentage of change in the state average weekly wage determined for the current year and the percentage change in the state average weekly wage for each of the prior four years. The maximum compensation benefits payable must then be adjusted by the average percentage change.
Required health care benefits: This measure requires employers to provide the services of a healthcare provider, medical treatment and supplies, and transportation to and from the home of the injured employee. Without application or approval, an employee may consult a healthcare provider of the employee’s choice for examination, diagnosis, or treatment, and the employer must only be liable for the charges of such healthcare provider up to a total amount of $800.
This measure requires reimbursement of reasonable expenses for overnight accommodations as needed to avoid hardship for the employee. The employer is liable for the sum of $30 per day for each full day that the employee was required to be away from their residence for meal expenses.
Total disability payments: This measure allows salary or wages for total disability to be paid electronically. If compensation is being paid electronically to the injured worker’s account, the employer must notify the injured worker’s attorney each time payment is made.
Effective date: This measure after its publication in the statute book
Most Recent Update:
03/27/2024: On March 27 this measure passed the House in a unanimous vote. This measure is eligible to be sent to Governor Laura Kelly (D).
Kansas Services
- Workers’ compensation claims administration
- Medical bill review in compliance with state requirements
- Local PPO development and management
- Case management services
Kansas Resources
Ready to get started?
Our team is ready to answer any questions and help you find the right solutions.