Kansas Legislature Considers Allowing Health Insurance Subrogation

In a bill sponsored by Kansas State Senator Phillip Journey, the Kansas legislature is considering a proposed bill which would allow health care insurers to include subrogation clauses in health insurance plans and contracts. Currently, Kansas Administrative Regulation § 40-1-20 prohibits inclusion of such subrogation/reimbursement language into plans and policies. Senate bill 44 would change all that.

Unfortunately, the bill is on life support, but still has a pulse. Senator Phillip Journey, the sponsor of the bill, is a good Senator and is a friend of the insurance industry for all the right reasons. I spoke with Senator Journey about the bill recently, and he bemoaned the fact that he cannot get it out of Committee. The reason: a confused Chamber of Commerce lobby who thinks somehow this bill would mean more "frivolous lawsuits" against their businesses. Senator Phillip Journey asked MWL to write an article for the Wichita Eagle urging support for the bill and send it to him - which we are doing. It is completely ironic that in a world where Democrat lawmakers are usually the ones who oppose subrogation and reimbursement legislation - courtesy of the strong trial lawyers' lobby - we now have conservative constituents opposing the bill out of ignorance and confusion. Once again, our mission boils down to educating lawmakers and the judiciary about the benefits of subrogation.

Senator Journey can be contacted at his law office as follows:

Law Offices of Phillip B. Journey
906 N. Main Street, Ste. 3
Wichita, KS 67203
(316) 269-0602
phillipbjourney@netzero. net

We would urge clients and friends of MWL to contact lawmakers in the Kansas legislature about the issue. If insurance companies want to make good use of their lobbyists - now is the time. This bill, or one substantially like it, is introduced every year. This one is set to be heard by the Special Committee on Judiciary on September 18, 2007 from 10:00 a.m. to 5:00 p.m. - most likely in the morning, depending on the number of conferees. The Special Committee is made up as follows:

Sen. John Vratil (Chair) vratil@senate.state.ks.us
Sen. Greta Goodwin (R.M. Member) goodwin@senate.state.ks.us
Sen. Phillip Journey phillipbjourney@netzero.net
Sen. Julia Lynn lynn@senate.state.ks.us
Sen. Derek Schmidt schmidt@senate.state.ks.us
Rep. Michael O'Neal (Vice-Chair) oneal@house.state.ks.us
Rep. Sydney Carlin carlin@house.state.ks.us
Rep. Marti Crow crow@house.state.ks.us
Rep. Lance Kinzer kinzer@house.state.ks.us
Rep. Bill Light light@house.state.ks.us
Rep. Jan Pauls pauls@house.state.ks.us
Rep. Marc Rhoades rhoades@house.state.ks.us
Rep. Vern Swanson swanson@house.state.ks.us

Contact these committee members and let them know that there is not only state - but national support for the bill - which would take Kansas out of the vast minority of states which have such antiquated and business-unfriendly anti-subrogation statutes. It might be advisable for anybody who can be available on September 18 to contact Athena Andaya at (785) 296-4420 or AthenaA@kird.state.ks.us to get on the speaking schedule. These bills move forward based on the perceived amount of interest and concern from the public. Kansas members are especially urged to speak.