The stakes for Kansas to expand Medicaid have been raised.
The state received notice from the Centers for Medicare and Medicaid Services last week that if it doesn’t expand its Medicaid program, it would lose federal funding for uncompensated health care, according to officials from the Kansas Department of Health and Environment.
The federal government provides money for the state’s uncompensated care pool to reimburse health care providers who serve the uninsured.
In 2015, the federal funding added up to $45 million. Combined with the state’s portion, the 2015 pool totals $80.7 million.
The funding cut would start in 2018, and KDHE says it would potentially decrease reimbursements to hospitals for charity care.
Conservative Kansas lawmakers have chosen not to expand the state’s Medicaid program as prescribed by the Affordable Care Act over concerns about costs as well as reluctance to expand social service programs.
Expansion proponents, including the Kansas Hospital Association and numerous nonprofit health groups, say expansion would provide coverage for between 140,000 and 170,000 Kansans and save the state money due to an influx of federal funds.
Florida governor Rick Scott threatened to sue the Obama administration when his state received a similar notice about an uncompensated care funding cut last week.
Kansas health officials say they currently have no plans to challenge the proposed cut.
