Kansas lawmakers pass bill increasing HMO fee to help restore $56M in Medicaid cuts

The Kansas legislature approved a bill aimed at offsetting about $56 million in cuts to the state’s Medicaid program ordered by Republican Gov. Sam Brownback in May 2016, KCUR reports.

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The Senate substitute for House Bill 2079 proposes increasing the fee health maintenance organizations pay to operate in Kansas to replace the funds.

The bill calls for a 5.77 percent fee, up from 3.31 percent. State lawmakers anticipate the change, set to take place January 2018, would garner $108.6 million for Medicaid next year, and $144.6 million in fiscal year 2019, the report states. 

The Kansas Insurance Department, Topeka-based Blue Cross and Blue Shield of Kansas and Hartford, Conn.-based Aetna initially opposed a similar measure calling for the fee to be retroactive before 2018. 

BCBSK spokesperson Mary Beth Chambers told KCUR the insurer does not expect the fee will affect policyholders in 2018.

Mr. Brownback has not said if he plans to sign the bill, the report states.  

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