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Thursday, May 19 2016

Full Issue

Kansas Cuts $56 Million From Medicaid To Help Close Budget Shortfall

The cuts to the health program serving low-income residents include a reduction in reimbursements to doctors and hospitals.

Kansas will forgo more than $120 million in combined state and federal money for its Medicaid system in the wake of state budget cuts that spared public education. Gov. Sam Brownback鈥檚 office simultaneously announced his signing of the budget and $97 million in cuts to state spending on Wednesday. More than half of that will come out of the state鈥檚 Medicaid system, which provides health coverage for low-income Kansans and accounts for 20 percent of the state鈥檚 general fund budget. (Lowry, 5/18)

Gov. Sam Brownback trimmed more than $56 million from Medicaid in Kansas as part of larger budget cuts announced Wednesday, raising concerns that health care providers may decide not to take unprofitable patients. About $38.2 million of the $56.4 million in budget cuts comes from reducing reimbursements by 4 percent for providers who treat patients covered by KanCare, the state鈥檚 privatized Medicaid program launched in 2013. The remaining $18.2 million comes from cuts in other areas of the Medicaid program. (Hart, 5/18)

The governor also warned that more cuts could be made to Medicaid and the higher education system if the Kansas Supreme Court orders an additional $40 million or more in school funding. A ruling is pending on whether a school funding measure that passed earlier this year provides equitable funding to the state's 286 school districts. (Hellman, 5/18)

The administration gave no hint that it would reconsider its tax policy, which many say has contributed to the state鈥檚 inability to meet revenue expectations. ... The Medicaid provider rate cut spares community-based service providers and nearly 100 rural and critical access hospitals. Sean Gatewood, with the KanCare Advocates Network, expressed gratitude that community-based service providers had been spared but said acting like cuts will not have an impact is 鈥渘ot living in reality.鈥 Senate Minority Leader Anthony Hensley, D-Topeka, slammed the reductions. He argued Brownback is shielding his tax policy while harming Medicaid recipients. (Shorman, 5/18)

Dr. Kevin Hoppock said he gets roughly 50% reimbursement for every service he does to a patient with Medicaid compared to a patient with commercial insurance. He said a cut could harm patients ability to find care. "You see if you reduce reimbursement rates to docs, you're going to reduce participation which obviously makes it difficult for patients to find a doctor," he said. Hoppock said doctors don't often turn away patients but this change could make that more difficult. (Fasbinder, 5/18)

Modern Healthcare looks at concerns that new federal rules may be spurring some other states to also trim Medicaid reimbursements聽鈥

Some providers say states such as Oklahoma and North Dakota may be cutting Medicaid rates by as much as 25% and 47% respectively, as a way to cover up how much future payment cuts would affect beneficiaries. In a letter to the CMS, the American Academy of Pediatrics, American College of Physicians, American Medical Association and American Osteopathic Association say they believe the states may be dropping their rates now in anticipation of new rules that require the states to assess how payments affect access to care. (Dickson, 5/18)

And in Medicaid news from Colorado 鈥

Colorado's Medicaid agency is expanding a chronic pain management program that connects primary care providers with specialists to guide treating clients with pain issues as well as those struggling with opioid addiction. (5/18)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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