40-3404. Annual premium surcharge; collection by insurer; penalty for failure of insurer to comply; basis of amount of premium surcharge.
40-3404
40-3404. Annual premium surcharge; collection byinsurer; penalty forfailure of insurer to comply; basis of amount of premium surcharge.(a) Except for any health care provider whose participation in the fundhas been terminated pursuant to subsection (i) of K.S.A. 40-3403 andamendments thereto, the board of governors shall levy anannual premiumsurcharge on each health care provider who has obtained basic coverage andupon each self-insurer for each fiscal year. This provision shall not apply tooptometrists and pharmacists on or after July 1, 1991 nor to physicaltherapists on or after July 1, 1995, nor to health maintenance organizationson and after July 1, 1997. Such premium surchargeshall be an amount based upon a ratingclassification system establishedby the board of governors which is reasonable, adequate and not unfairlydiscriminating. The annual premium surcharge upon the university of Kansasmedical center for persons engaged in residency training, as described inparagraph (1) of subsection (r) of K.S.A. 40-3401, andamendments thereto, shall be based on an assumed aggregate premium of $600,000.The annual premium surcharge upon the employers of personsengaged in residency training, as described in paragraph (2) ofsubsection (r) of K.S.A.40-3401, and amendments thereto, shall be based on anassumed aggregate premium of $400,000. The surcharge on such $400,000 amountshall be apportioned among the employers of persons engaged in residencytraining, as described in paragraph (2) of subsection (r) ofK.S.A. 40-3401, and amendments thereto, based on the number of residentsemployed as of July 1 of each year. The annual premium surcharge upon anynonprofit corporation organized to administer the graduate medical educationprograms of community hospitals or medical care facilities affiliated with theuniversity of Kansas school of medicine shall be based upon an assumedaggregate premium of $10,000. The surcharge on such assumed aggregate premiumshall be apportioned among all such nonprofit corporations.
(b) In the case of a resident health care provider who is not aself-insurer, the premium surcharge shall be collected in addition tothe annual premium for the basic coverage by the insurer and shall notbe subject to the provisions of K.S.A. 40-252, 40-955 and40-2801 et seq., and amendments thereto. The amount of the premiumsurcharge shall beshown separately on the policy or an endorsement thereto andshall be specifically identified as such. Such premium surcharge shallbe due and payable by the insurer to the board ofgovernors within 30days after the annual premium for the basic coverage is received by theinsurer, but in the event basic coverage is in effect at the time thisact becomes effective, such surcharge shall be based upon the unearnedpremium until policy expiration and annually thereafter. Within 15days immediately following the effective date of this act, the board ofgovernors shall send to each insurer informationnecessary for theircompliance with this subsection. The certificate of authority of anyinsurer who fails to comply with the provisions of this subsection shallbe suspended pursuant to K.S.A. 40-222, and amendments thereto, untilsuch insurer shall pay the annual premium surcharge due and payable to theboard of governors. In the case of a nonresident healthcare provider or aself-insurer, the premium surcharge shall be collected in the mannerprescribed in K.S.A. 40-3402, and amendments thereto.
(c) In setting the amount of suchsurcharge, the board of governors may require anyhealth care provider who haspaid a surcharge for less than 24 months to pay a higher surcharge than otherhealth care providers.
History: L. 1976, ch. 231, § 4;L. 1980, ch. 143, § 2;L. 1983, ch. 160, § 2;L. 1984, ch. 238, § 4;L. 1985, ch. 166, § 3;L. 1986, ch. 229, § 29;L. 1986, ch. 179, § 4;L. 1986, ch. 184, § 4;L. 1986, ch. 181, § 7;L. 1987, ch. 176, § 3;L. 1990, ch. 175, § 4;L. 1991, ch. 139, § 5;L. 1994, ch. 155, § 4;L. 1995, ch. 145, § 4;L. 1997, ch. 134, § 3;L. 2001, ch. 204, § 4; May 31.