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District discloses KDHE Medicaid formula error leading to six-figure overpayment to be repaid

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Summary

Superintendent said KDHE used an incorrect formula dating to 2016 that overpaid Medicaid reimbursements to many Kansas school districts, creating an overpayment for USD 383 of "over $300,000" that the district will have to repay and that may increase the special-education deficit.

Superintendent Eric Reed told the board May 20 that an error in a Kansas Department of Health and Environment (KDHE) reimbursement formula had produced overpayments to school districts statewide and that Manhattan-Ogden USD 383's overpayment totaled more than $300,000.

"...it was the mistake found in the KDHE formula on the reimbursement for Medicaid services," Reed said in his superintendent report. He said the wrong formula had been in use since 2016 and that the error…

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