The 2005 Kansas legistlature expanded this credit to those employers that make contributions to a health savings account of an eligible covered employee. It also increased the credit amount and decreased the time span in which to take the credit. The credit is $70 per month per eligible covered employee for the first 12 months of participation, $50 per month per eligible covered employee for the next 12 months of participation and $35 per eligible covered employee for the next 12 months of participation.

Any small employer as defined by K.S.A., 40-2209d, that has between 2 and 50 employees, may establish a small employer health benefit plan for the purpose of providing a health benefit plan as described under K.S.A 40-2240 covering such employers eligible employees and such employees family members. For those plans established prior to January 1, 2005, a certificate issued by the Commisioner of Insurance entitling a small employer to claim the tax credit authorized by K.S.A. 40-2246 must have been obtained.

An eligible employee is one who is employed for an average of at least 30 hours per week and elects to participate in one of the benefits plans provided under this act, and includes individuals who are sole proprietors, business partners, and limited partners who own the business. The term eligible employee does not include individuals:

1. engaged as independent contrators:
2. whose periods of employment are on an intermittent or irregular basis; or
3. who have been employed by the employer for fewer than 90 days.

For More Information see the Kansas website, or

Insurance Commisioners Office:

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