Kansas Medicaid advocates share dire forecast of potential congressional funding cuts

REACH Healthcare Foundation and United Methodist Health Ministry Fund, health-related philanthropies serving Kansans, said potential cuts in federal spending on Medicaid could slash health coverage of low-income Kansans and threaten financially struggling hospitals. (Tim Carpenter/Kansas Reflector)

by Tim Carpenter, Kansas Reflector

TOPEKA — Analysis of potential congressional cuts to Medicaid indicated Kansas’ loss of nearly $350 million in the first year and more than $3 billion over 10 years could shrink coverage for vulnerable populations, escalate family medical debt and raise the risk of hospital closures.

Reductions in federal financing of Medicaid could lead to downsizing by 5% to 15% the number of Medicaid enrollees in Kansas and trigger a decline of 22% in Medicaid funding to hospitals in the state. Kansas has two-dozen rural hospitals at risk of immediate closure. Shrinking federal funding to Medicaid could add to the burden of uncompensated patient care and threaten hospitals operating on narrow margins.

The findings were in a report released Tuesday by REACH Healthcare Foundation and United Methodist Health Ministry Fund, both health-related philanthropies serving Kansans. The report incorporated analysis from Manatt Health, which provides strategic, policy and legal advisory services in the health care industry.

Impetus for the projections was upcoming debate in Congress on a goal of cutting $880 billion in federal spending on Medicaid in the next decade.

“The data is clear and deeply concerning,” said David Jordan, president and CEO of United Methodist Health Ministry Fund. “We will all pay the price — higher costs, increases in local taxes and less access to care — to offset these cuts. It’s critical that lawmakers, health care providers, advocates and the people of Kansas recognize the consequences before it’s too late.”

United Methodist Health Ministry Fund is a statewide foundation that has worked since 1986 to improve the health of Kansans.

Medicaid is a joint federal and state program offering health coverage to lower-income Kansas children, seniors, people with disabilities and pregnant women. Medicaid enrolls 366,000 Kansans, including 31% of the state’s children. Medicaid supports four of seven nursing home residents in Kansas as well as one in four working-age adults in the state who have a disability, the report said.

There is interest among congressional Republicans in adopting a national work requirement for recipients of Medicaid. The Kansas Medicaid program, known as KanCare, doesn’t extend coverage to working-age adults regardless of income unless the recipient was a parent, caregiver or a person with a disability.

“Medicaid is the largest source of federal funds in Kansas and any cuts to the program will have severe economic and health impacts felt in every corner of the state,” said Brenda Sharpe, president and CEO of REACH Healthcare Foundation.

REACH is a charitable organization striving to improve access to quality, affordable care for uninsured and medically underserved residents of Johnson, Wyandotte and Allen counties in Kansas and Jackson, Cass and Lafayette counties in Missouri.

Manatt Health relied on computer modeling to produce one-year and 10-year projections for Medicaid based on the idea of reducing federal expenditures by $880 billion within a decade. The work by Manatt Health was released before Congress completed work on spending adjustments, but the assessment aligned with policy parameters, options and effective dates outlined by the nonpartisan Congressional Budget Office.

This article was republished with permission from the Kansas Reflector. The Kansas Reflector is a non-profit online news organization serving Kansas. For more information on the organization, go to its website at www.kansasreflector.com.