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HB 800

Review Effectiveness and Delivery of Child Care.

2025-2026 Session Introduced by Grant Campbell and 15 co-sponsors

HB 800 standardizes and centralizes fiscal analyses for mandated health benefits, detailing premiums, admin costs, and potential federal cost defrayal obligations.

Passed 1st Reading
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Bill Summary · HB 800

Summary — HB 800 (Amendment to KRS 6.948)

Subject: Fiscal impact statements for mandated health benefits
Status snapshot: Introduced March 2025; amends KRS 6.948

Purpose / Intent

HB 800 revises Kentucky’s statutory process for preparing and delivering fiscal and policy impact statements when proposed legislation creates mandated health benefits. The bill centralizes responsibility with the Department of Insurance (and the Department of Employee Insurance for state-employee plans), clarifies definitions, prescribes the content and timing of required analyses, and sets confidentiality and requester rules. The goal is to inform legislators and stakeholders about the likely administrative, premium, and fiscal consequences of health-mandate legislation — including any federal “cost defrayal” obligations under federal law.

Key provisions

  • Definitions: Expands and clarifies key terms, including “health benefit plan,” “state employee health plan,” “mandated health benefit,” “health mandate impact statement,” “federal cost defrayal impact statement,” and “state employee health plan impact statement.”
  • Identification & triggers:
    • Any bill/amendment containing a mandated health benefit must be identified on an LRC form when introduced.
    • Legislative Research Commission (LRC) staff must notify the sponsor and, upon introduction/adoption/filing, request the appropriate impact statements from the Department of Insurance and/or the Department of Employee Insurance.
  • Who may request statements: bill sponsor; majority/minority leadership members or standing committee chairs with possession of the legislation; for unfiled bills, the sponsor may request.
  • Confidentiality: Draft bills and requested impact statements are confidential until published for public distribution, with exceptions for staff, contractors, the requester, and others designated by the requester.
  • Health mandate impact statement (prepared by Dept. of Insurance):
    • Must be written and signed by the commissioner or designee.
    • Must estimate how the mandate will affect insurers’ administrative expenses, premiums in affected markets, and total health-care costs for insureds (including any potential future cost savings).
    • Must include supporting documentation, studies, calculations, a certification of accuracy, and an explanation of potential future savings (if any).
    • Deadline: completed and transmitted to LRC staff and requester as soon as possible, but no later than 30 days after the request—unless an extension is agreed.
  • Federal cost defrayal impact statement:
    • Must indicate whether the mandate may trigger state payment obligations to defray costs under federal law (42 U.S.C. §18031(d)(3) and 45 C.F.R. §155.170).
    • Must identify which bill provisions could trigger defrayal and, if so, include a cost-defrayal fiscal analysis prepared per the statute; the Department must consider applicability under KRS 304.17A-099(2).
    • Written, signed by commissioner/designee, and submitted within statutory deadlines (similar timing to health mandate statements).
  • State employee health plan impact statement: Prepared by Department of Employee Insurance when mandates affect state employee plans.
  • Process requirement: LRC staff completeness, notification duties, and transmission protocols to requester and LRC.

Who is affected

  • Kentucky Department of Insurance (primary drafter), Department of Employee Insurance (for state plans), LRC staff and legislative sponsors.
  • Health insurers and issuers of health benefit plans (potentially affected by premium and administrative cost estimates).
  • State employee health plans and enrolled employees (if mandates apply).
  • Legislators and committees — receive additional analytical information prior to floor and committee consideration.

Procedural / timeline notes

  • Identification and requests occur at introduction/adoption/filing; impacted bills are flagged by LRC staff.
  • Standard deadline for the Department of Insurance to deliver health mandate impact statements is within 30 days of the request, unless mutually extended.
  • Statements remain confidential until published by LRC.
  • Statements must be transmitted to LRC staff and the requester.

Potential impact

  • Provides legislators with more standardized, documented fiscal analyses of health-mandate bills before action.
  • May slow legislative timelines slightly when departments require time to prepare detailed analyses, but increases transparency on cost and federal fiscal exposure.
  • Could influence legislative decision-making on health mandates by clarifying premium and state-fiscal consequences, including any requirement that the state defray federal marketplace costs.

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

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