Insurers would pay a 1.98% tax on covered Kansas premiums

Covered insurers and nonprofit health coverage providers would pay an annual tax on taxable premiums and coverage charges. The rates cover listed Kansas and out-of-state insurers and nonprofit health coverage providers, including life insurers and medical and dental coverage providers. Allowed deductions and credits would apply, including deductions for canceled coverage and dividends returned to customers. Certain insurers could exclude payments for reinsurance, eligible retirement plans, and annuities from taxable premiums. The schedule specifies 2% for tax year 2025 and 1.98% for tax year 2026 and all later tax years. Taking effect would also require publication in the Kansas Register.

Kansas's insurance commissioner would send collected fees to the state treasurer for the fund that pays for insurance regulation. The money would go to the insurance department service regulation fund, which pays for Kansas insurance oversight. This deposit rule would cover fees collected under any statute, without directing a share of premium taxes to the fund. The fee deposit rule names January 1, 2026, as its start date. The proposal also requires publication in the Kansas Register before taking effect.