KANSAS INSURANCE DEPARTMENT

Notice of Hearing on Proposed

Administrative Regulations

A public hearing will be conducted at 1:30 p.m., July 26, 2005, in the third floor conference room, Kansas Insurance Department, 420 S.W. 9th, Topeka, Kansas, to consider the adoption of proposed changes in existing rules and regulations.

The 60-day notice of the public hearing shall constitute a public comment period for purpose of receiving written public comments on the proposed rules and regulations. All interested parties may submit written comments prior to the hearing to Deletria Nash, Kansas Insurance Department, 420 S.W. 9th, Topeka, Kansas, 66612-1678, via facsimile at 785-291-3673, or via email at dnash@ksinsurance.org. All interested parties will be given a reasonable opportunity to present their views orally on the adoption of the proposed regulation during the hearing.

A summary of the regulation and its economic impact follows.

K.A.R. 40-4-35. Medicare supplement policies; minimum standards; requirements. This proposed regulation adopts by reference the Kansas Insurance Department’s policy and procedure to implement Medicare Supplement Insurance minimum standards dated May 17, 2005.

In November of 1999, the United States Congress amended section 1882 of the Social Security Act, which governs Medicare Supplement insurance. Since that time, the federal standard in that Act consists of the National Association of Insurance Commissioners’ Model Regulation governing minimum standards Medicare Supplement Insurance, which sets the standard for state certification. State regulatory programs are required to meet the requirements equal to or more stringent than the provisions of Section 1882 of the Social Security Act. In December of 2003, Congress amended the law to incorporate the most recent changes to the NAIC model regulation.

The Kansas Insurance Department is adopting by reference its policy and procedure dated May 17, 2005, which is based primarily on the current NAIC model regulation. Almost all of the amendments being proposed are to bring the Kansas regulation in compliance with the required federal standards. The National Association of Insurance Commissioners has drafted and sent to the states recommended language that incorporates the most recent amendments. This recommended language has been incorporated into these proposed amendments. These proposed amendments are necessary for Kansas to maintain the certification of Kansas state Medicare Supplement insurance program by the Secretary of Health and Human Services.

The proposed amendment to K.A.R. 40-4-35 should have little or no economic impact. The other amendments are technical and should have no economic impact. Any additional regulatory responsibilities that these amendments could impose on the Department can be handled with present staff and budget. There is no economic impact on other state government entities or local government entities.

Any individual with a disability may request accommodation in order to participate in the public hearing and may request the proposed regulations and economic impact statements in an accessible format. Requests for accommodation to participate in the hearing should be made at least 5 working days in advance by contacting Deletria Nash at (785) 296-4140 or via email at dnash@ksinsurance.org. Any individual desiring a copy of this regulation and the policy and procedure that is being adopted by reference may obtain a copy from our website, www.ksinsurance.org, under the Legal Issues link or by contacting Deletria Nash by phone at (785)296-4140 or via email at dnash@ksinsurance.org. The charge for copies is fifty cents per page.