In 2001, Kansas implemented a small employer pooling mechanism called the Kansas Business Health Partnership. The pool, a non-profit organization, purchases coverage via the private market with the goals of employee choice, minimized administrative costs, and benefits that meet standards of federal and state law. The original legislation would have made subsidies available for low-income workers to purchase health insurance through the partnership, but budget difficulties delayed the subsidy. In 2005, the Kansas Legislature authorized $500,000 for subsidies.
The original partnership has been dissolved and will be reorganized under the leadership of the Kansas Business Health Policy Committee (BHPC). The BHPC has issued an RFP for carrier participation. Two carriers bid for the pilot program through a bid process that closed April 28, 2006. Efforts are now being weighed to pursue alternative sources of additional funding.
