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Bill

HB 2430

Enacting the insurance savings account act, allowing individuals and corporations to establish insurance savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications under the Kansas income tax act.

2025-2026 Regular Session Introduced by Adam Smith

Kansas bill creates tax-advantaged Insurance Savings Accounts for individuals and corporations to fund insurance expenses, with income tax incentives to encourage participation.

Died in Committee
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WeVote Research Nonpartisan
Bill Summary · HB 2430

Legislative bill overview

HB 2430 creates Insurance Savings Accounts (ISAs), tax-advantaged accounts that individuals and corporations can establish to set aside funds for eligible insurance-related expenses. The bill specifies which financial institutions can offer these accounts, defines qualified expenses, and creates corresponding tax modifications under Kansas income tax law to incentivize participation.

Why is this important

This legislation could reshape how Kansans manage healthcare and insurance costs by allowing pre-tax savings similar to Health Savings Accounts (HSAs). The tax benefits may increase accessibility to insurance coverage for some residents, but the structure and eligible expenses will determine whether this primarily benefits higher-income earners or provides broader affordability relief.

Potential points of contention

  • Tax revenue impact: The income tax modifications could reduce state revenues; critics may argue resources should fund public health programs instead of tax incentives favoring those who can afford savings accounts
  • Scope of "eligible expenses": The bill's definition of covered expenses remains unclear from this summary—narrowly defined expenses limit utility, while broad definitions could create budget unpredictability
  • Equity concerns: Tax-advantaged savings accounts typically benefit higher-income individuals with disposable income; lower-income Kansans may lack funds to establish accounts, potentially widening insurance access disparities

Compiled from official sources — confirm details with the bill’s official record.

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