1. Keeping Your Business Informed and Prepared
Risk Management Bulletin
Kansas House Bill 2516
Affects PAs, APRNs & Nursing Homes
In October 2012 the Kansas Supreme Court upheld the constitutionality of the $250,000 cap on non-economic,
medical malpractice damages (pain and suffering) originally enacted in 1988. Representatives of various Kansas
healthcare industry associations became concerned that the ruling implied Kansas health care providers could
only be protected by the cap if they participated in the Kansas Health Care Stabilization Fund (HCSF). In order
to address this concern and ensure the availability of quality health care for Kansas residents House Bill 2516
(HB2516) was signed into law on July 1, 2014 to become effective January 1, 2015.
This bill contains several amendments one of which broadens the definition of a health care provider to include
Physician Assistants (PA) Advanced Practice Registered Nurse (APRN), assisted living facilities, nursing facilities,
and residential health care facilities.
As newly defined health care providers these individuals and entities will be required to maintain medical
professional liability coverage from a licensed insurer in the state of Kansas and pay into the Kansas Health Care
Stabilization Fund. The law applies to any defined health care provider with an active Kansas license regardless of
whether or not they practice in the state. However, compliance with the Kansas Health Care Stabilization Fund
varies depending on state residency.
The insurance policy must provide minimum coverage limits of $200,000 per claim with an annual aggregate total
limit of $600,000 coverage. The health care providers are also required to select one of three options for additional
coverage via the HCSF. Those options are: $100,000 per claim with $300,000 annual aggregate, $300,000 per
claim with $900,000 annual aggregate, or $800,000 per claim with $2,400,000 annual aggregate. The deadline for
compliance is January 1, 2015.
This bill also allows insurance carriers to offer a wider spectrum of insurance products to address emerging liability
trends. Professional liability insurance carriers are quickly responding to the new law by filing premium rates and
policy terms with the Kansas Insurance Commissioner’s office. Insureds will want to confirm that any current
coverage they may have is in compliance with the January 1, 2015 law. If not they will need to seek new coverage.
As of this date the Kansas Health Care Stabilization Fund is not planning to extend prior acts coverage for services
rendered prior to January 1, 2015. Those health care providers currently practicing in Kansas with a claims made
professional liability insurance policy will need to make arrangements to cover prior acts from services rendered
before the date of their new coverage. Most insurance carriers will offer “tail” coverage to close the coverage gap.
For additional information or to secure a firm coverage quote contact Dan Bukaty at 913-647-3946 or email
dbukaty@bukatyagency.com.
Bukaty Companies
11221 Roe Ave., Ste. 200 | Leawood, KS 66211
Phone: 913.951.2400 | Toll-Free: 888.657.0440
www.bukatyagency.com