Kansas governor’s renewed call for Medicaid expansion emphasizes mental health benefit

OLATHE — Standing at the site of a future mental health hospital, Gov. Laura Kelly on Thursday emphasized the benefits Medicaid expansion would have for low-income families struggling with mental health challenges.

The Democratic governor has pushed Medicaid expansion for years, but Republican leaders in the Legislature have blocked legislation from moving forward. By expanding eligibility for health insurance coverage, the governor said, thousands of Kansans could receive mental health treatment.

“The North Star of my second term is making Kansas the best state in the country to live, to work, to raise a family,” Kelly said. “Improving mental health in every community is critical to that goal.”

Kelly appeared with Republican U.S. Sen. Jerry Moran and Democratic U.S. Rep. Sharice Davids to emphasize the need to prioritize mental health during a groundbreaking ceremony for a 72-bed Olathe mental health hospital.

The Olathe facility, which will be jointly operated by KVC Health Systems and Children’s Mercy Hospital, will have the capacity to treat more than 3,400 patients annually. The project is supported in part by $12.7 million in funding from federal COVID-19 relief dollars.

The hospital construction comes at a crucial time for Kansas mental health treatment, with the state’s mental health needs far outstripping available mental health beds and psychiatric hospitals.

A 2023 Mental Health America report ranked Kansas last in terms of meeting overall mental health needs, and with the unwinding of  pandemic-era health care protections, numbers are expected to worsen.

“I’ve seen the anguish, I’ve seen the fear of families that are struggling to find services and access services for their loved ones. That ultimately is what brings us here,” said Jason Hooper, KVC Health Systems president and CEO.

State of Medicaid

In Kansas, Medicaid is provided through KanCare and limited to low-income people who have disabilities or children. Medicaid expansion would increase eligibility to adults under the age of 65 with incomes up to 138% of the federal poverty level. If the state broadened enrollment of uninsured adults in KanCare, thousands of lower-income families would be provided with health care options.

Kelly estimated that Medicaid expansion would give 150,000 Kansans access to affordable health care and that nearly one-third of those Kansans currently struggle with mental health issues or substance abuse disorders.

Expanding Medicaid would unlock an estimated billion dollars in annual federal aid. Kansas is one of 10 remaining states that hasn’t adopted expansion.

With the expiration of the federal pandemic emergency declaration, 120,000 Kansans who are already enrolled in Medicaid must re-apply for benefits and are at risk of losing coverage.

“I refuse to give up on this issue,” Kelly said. “I’m going to propose Medicaid expansion for the sixth time when the Legislature reconvenes in January and I hope legislative leadership will do the right thing.”

Her speech comes after another legislative session in which Republican leaders refused to consider a vote on Medicaid expansion.

“Every year, I have tailored the proposal to address concerns expressed by legislative leadership,” Kelly said. “Every year, they’ve moved the goalpost. That can’t keep happening.”

Lawmakers attending the groundbreaking event had mixed views on the matter.

“It’s really neglectful not to be doing it,” said Rep. Mari-Lynn Poskin, D-Leawood. “And I would use a stronger word, but let’s leave it at that because we’re talking about working together.”

With little Democratic input in the GOP-controlled agenda, the fight may be futile.

“I don’t know that it’s a long-term good thing,” said Rep. Carl Turner, R-Leawood, who didn’t elaborate.

Call for unity

Moran and Davids both called for unity at a federal level.

Moran took a little time in his speech to correct Kelly’s usage of the term “federal money” — he prefers to call it “taxpayers’ money” and “money that’s being borrowed.” While he voted against the American Rescue Act, the source of the hospital’s $12.7 million in federal funding, Moran said he approved of the money being used on the hospital.

“I’m celebrating, I hope, with all of you, the recognition that we have the capacity of coming together,” Moran said. “And perhaps as a side note, it would be useful and wouldn’t it be great for the country if Congress and the political climate could reach the same conclusion that working together gets results.”

Davids said she agreed with Moran. 

“If we could get this sort of thing happening in D.C., it would be amazing,” Davids said.