Shank: Kansas one of only 12 states to decline Medicaid Expansion

This week the Kansas Hospital Association website ticker reports Kansas has, to date, declined nearly $5 billion in federal funds during the past seven years through Medicaid expansion.

Thirty-eight states, including our neighboring states of Missouri, Oklahoma, Nebraska, and Colorado, along with the District of Columbia, participate in Medicaid expansion with results exceeding expectations.

Yet Kansas refuses to expand Medicaid, even with the estimated $450 million in enhanced federal matching dollars our existing Medicaid program would receive over two years under the American Rescue Plan Act if we expanded Medicaid tomorrow.

The Medicaid expansion story began in 2014 following the passage of the Affordable Care Act. Federal funds were made available to all 50 states to offset cuts to Medicare, which was included in the final passage of the act.

Kansas declined the federal dollars from the start, and it is presumed these funds were distributed to other states. Not only have we passed on billions in federal dollars, but we missed an opportunity that would have potentially created more than 5,000 good-paying jobs in our state.

Hard-working Kansans remit approximately $25 billion each year in federal income tax payments. It stands to reason that we should aspire to seek a return of as many of those dollars as possible.

Closer to home, people often ask what Medicaid expansion will do for Reno County and Hutchinson? The benefits will be significant. The Kansas Hospital Association (KHA) in 2020 said approximately 150,000 Kansans, including 1,500 Reno County residents, will gain access to health insurance coverage as a result of Medicaid expansion.

Sales tax collections and retail sales will increase, resulting in an economic windfall for the community. Other benefits include increased access to preventive care and chronic disease management and the availability of additional mental health services.

During the last fiscal year, Hutchinson Regional Healthcare System provided more than $20 million in uncompensated care. Medicaid expansion will reduce that figure by as much as one-third, which will provide additional resources to assist in the ongoing fight against COVID-19 and support the addition of specialty clinics so badly needed in our community.

The COVID-19 relief bill passed in March adds an extra incentive for the 12 holdout states to join the program. By joining the program, Kansas will receive additional funds that will more than offset Kansas's costs when joining Medicaid expansion.

Kansas has a sterling reputation for being good stewards of federal funds. During the past 50 years, Kansas has utilized these funds to build and maintain one of the nation’s finest systems of roads and highways while supporting farms and other businesses. Acceptance of Medicaid expansion dollars should produce similar results to take healthcare to a new level of excellence in Kansas.

The late Representative Jan Pauls from Hutchinson told me many years ago that nothing dies at the legislature until the last day. So, when the legislature reconvenes in May, there is still time to pass Medicaid expansion. Let’s urge our lawmakers to do what seems right for Kansas.

Richard Shank is a retired AT&T manager, is employed in the healthcare industry and has farming interests in Saline County. Email him at shankr@prodigy.net.