TOPEKA, Kan.—Kansas Gov. Kathleen Sebelius has signed legislation aimed at addressing the uninsured problem for the employees of small businesses in the state.

S.B. 272, which creates the Kansas Health Authority, gives the governor the power to appoint a committee to explore opportunities and encourage employer participation in health plans developed by the committee for low- and modest-wage workers employed by small employers.

The committee will develop and approve a request for proposals for a qualified entity to serve as its partner to provide a mechanism to combine federal and state subsidies with contributions from small employers and eligible employees to purchase health insurance on their behalf.

Low-wage and modest-wage employees of small employers will be eligible for the subsidies if their employer previously has not offered health insurance or they could not afford the coverage that was offered to them.

Under the legislation, which takes effect July 1, the Kansas Health Authority will also assume operational and purchasing responsibility for the state Medicaid program and the state's children's health insurance program and develop a statewide policy agenda that will incorporate health promotion into those programs.