Governor Kelly unveils Medicaid expansion legislation

HOLTON, Kan. (WIBW) - Kansas Governor Laura Kelly unveils Medicaid expansion legislation on Thursday, Dec. 14 at Holton Hospital.

Officials with the Office of the Kansas Governor stated that Governor Kelly unveiled the Cutting Healthcare Costs for All Kansans Act to expand Medicaid, a state and federal health insurance program, to an estimated 150,000 Kansans at no additional cost to state taxpayers. The commonsense legislative proposal builds on previous bipartisan Medicaid Expansion proposals to address Republican concerns, including by making the bill revenue-neutral.

Officials with the Office of the Kansas Governor said the introduction of this legislation follows the months-long “Healthy Workers, Health Economy” tour where Governor Kelly rallied healthcare workers, farmers and ranchers, business leaders, faith leaders and rural Kansans across the state in support of Medicaid Expansion. The bill would expand health coverage to working Kansans who currently make too much money to qualify for Medicaid but don’t receive health insurance through work or make too little to afford private health insurance.

“Each year I’ve been in office, I have introduced a bill to expand Medicaid with support from both sides of the aisle. The year, we’re going a step further to meet Republicans in the middle, putting forward a plan that would cut healthcare costs, create jobs, and grow our economy – all at no additional cost for Kansas taxpayers,” Governor Laura Kelly said. “We have taken such a bipartisan approach to incorporate what I’ve been hearing from Kansans during my tour and to reflect conversations we’ve had with Republican lawmakers. Now, there’s no excuse – at this point, every legislator standing in the way of Medicaid expansion is going against a commonsense, fiscally responsible proposal that benefits their constituents.

“As Governor Kelly’s ‘Healthy Workers, Healthy Economy’ tour highlighted, Medicaid expansion is an obvious solution to provide healthcare to hardworking Kansans and to support our hospitals,” said Ed O’Malley, President and CEO of the Kansas Health Foundation. “We appreciate that, by putting forward this measured proposal, Governor Kelly is clearly working to bring Republicans to the table. That’s what’s needed to get Medicaid expanded in Kansas.”

Officials with the Office of the Kansas Governor said addressing key Republican concerns, the Cutting Healthcare Costs for All Kansans Act:

Comes at no additional cost to Kansas taxpayers. The federal government pays for 90% of the costs to expand Medicaid, while states pay 10%. Under this proposal, the state’s 10% share is completely covered by drug rebates, a hospital fee, savings from higher reimbursement rates for existing Medicaid recipients, and additional federal funding. This does not include expected additional revenue from Kansas businesses boosted by a healthier workforce or reduced state expenditures on incarceration and state services because of a healthier population.

“My goal is to ensure Kansans’ tax dollars never go to waste, which is why I support this approach to expanding Medicaid,” said Kansas Senator Carolyn McGinn. “Right now, Kansans’ federal tax dollars are going to support hospitals and jobs in states like New York, California and every state adjacent to us instead of being invested in the people of Kansas.”

“It makes no sense to me that, while 40 other states have expanded Medicaid, we have not. Our tax dollars are going to every one of our neighboring states, while healthcare costs rise and hospitals close here in Kansas,” said Kansas Representative Dave Younger. “By including a work requirement and making sure Kansas taxpayers won’t pay for Medicaid expansion, this proposal addresses many of the concerns my Republican colleagues have had. Now, those in leadership positions need to let this topic be debated and voted on.”

Officials with Governor Kelly said this grows the Kansas workforce. This compromise proposal goes a step further than Governor Kelly’s other Medicaid Expansion proposals by including a work requirement for Medicaid enrollees to ensure Kansas’ workforce remains strong. There will be exceptions to this requirement, including for full-time students, full-time caretakers, veterans, and Kansans with medical conditions.

The bill will also reduce uncompensated care costs – the costs healthcare providers take on when uninsured patients can’t afford to pay a medical bill -- which will allow providers to compete for healthcare workers in an environment in which all the states surrounding Kansas have now expanded Medicaid.

“This proposal addresses a lot of the concerns I’ve heard from Republican colleagues by including a work requirement and multiple funding streams to ensure Kansas taxpayers won’t foot the bill for Medicaid expansion,” said Kansas Senator John Doll. “I urge my Republican colleagues to join me in supporting this bill to ensure our rural hospitals stay open, to cut healthcare costs and lower taxes, and to get affordable healthcare to more working Kansans.”

Governor Kelly said this improves public safety. For too long, prisons and jails have been shouldering the burden of providing medical care to uninsured inmates at their own expense. Governor Kelly worked with the law enforcement community to include this provision so that law enforcement can redirect those resources to focus on keeping Kansans safe. This would also reduce pressure on local governments to increase property taxes for correctional healthcare costs.

“This bill provides relief for county jails like the Sedgwick County Jail, which have been burdened with covering the high costs of health care for uninsured inmates,” said Sedgwick County Sheriff Jeffrey Easter. “If this part of the expansion proposal were to pass, it would cut down on expenses for local taxpayers and ease up resources so our law enforcement can focus on public safety.”

“I support expanding Medicaid with this provision to include health coverage for recently admitted inmates,” said Douglas County Sheriff Jay Armbrister. “We have seen benefits and cost savings in working with local providers for having health care rates that match Medicaid. Doing so takes the financial and administrative burden of providing that care off counties and keeps our attention focused on our top priority: public safety.”

House Speaker Daniel Hawkins (R-Wichita) released the following statement regarding the Cutting Healthcare Costs for All Kansans Act.

“While I appreciate the Governor’s newly found support for work requirements for welfare benefits, this is nothing more than smoke and mirrors because Governor Kelly most surely knows that the Biden administration has not approved any Medicaid work requirement and proactively revoked every single work requirement approved previously.

As she continues to make false promises, House Republicans will be working on legitimate ways to improve healthcare access, lower costs, and address the IDD waiver waitlist. "

House Minority Leader Representative Vic Miller responded with the following statement.

“There’s one word to describe Republican leadership: Cruel. Kansans across the state are suffering and quite literally dying from a lack of healthcare. Instead of responding with solutions, the Kansas GOP actively mocks these people in the media.

Republicans could attempt to defend their position in a fair debate, but Speaker Hawkins refuses to allow substantial discussion. He knows we will win the debate every time.

Speaker Hawkins never misses an opportunity to demonize our neighbors. Leadership doesn’t like when we point out the blood on their hands, but they are solely responsible. Republicans need to stop trading Kansas lives in an attempt to score political points against the governor.”

Kansas Senate President Ty Masterson shared a statement in response to Governor Kelly’s Medicaid expansion legislation.

“Cloaked in a fake work requirement and a tax scheme, the governor’s proposal to expand the welfare state creates more problems than it solves. It is poor public policy to push able-bodied adults off of private insurance and onto a government program that was intended for the truly vulnerable. While we all agree that health care is too expensive, its cost is largely driven by government – and so adding more government is not a solution.

“Instead of more government, Kansans need and deserve more personal choice and control. They need more options, with more competition and price transparency, and less hassle through reforms that help people obtain quality private health coverage, providing superior health outcomes and more timely access to care.”

Language for the proposed Cutting Healthcare Costs for All Kansans Act is available HERE.

Background information about the proposed Cutting Healthcare Costs for All Kansans Act is available HERE.

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