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Bill would require transparency, appeals process for Medicaid managed-care procurements
Summary
A House bill heard by the Senate committee would direct the Department of Administration to adopt written policies for negotiated procurements of managed care organizations for Medicaid, including prohibitions on destroying records and a legislatively staffed appeals process for ties and other disputes.
A bill that would require greater transparency and an internal legislative appeals process for selecting managed care organizations (MCOs) for the state Medicaid program was presented to the Senate Committee on Public Health and Welfare on the morning of the hearing.
Revisor Jenna summarized House Bill 2,284, saying the measure “directs the Department of Administration to adopt written policies governing the negotiated procurement of managed care organizations…to provide state Medicaid services pursuant to a contract with the Kansas program of medical assistance.” She noted the bill would bar destruction of procurement records, require a tiebreak procedure if evaluation scoring results in a tie, and require transparency with the Legislature during each step of the procurement process. Jenna said the bill passed the House 120 to 3.
Representative Will Carpenter, the bill’s conferee, told the committee the bill was proposed after “our big MCO issue last year with selecting a new managed care organization.” He said the prior procurement “was flawed at best” and cited destroyed documents and the lack of a decisive tie-breaking method. “This adds just a ton of transparency,” Carpenter said. He also described an amendment that would create an appeals committee comprised of legislators to adjudicate procurement appeals rather than relying on courts, saying the prior procurement “went to court. It was in court for months.”
Senator Petty asked whether the bill would add “another layer” to the evaluation process and expressed concern about legislative review of scoring sheets used by nonpartisan evaluators. Carpenter replied the appeals committee would apply mainly in the event of a tie but that the Legislature needs transparency and oversight because “it’s $4,000,000,000 to our state. We pay that bill.”
Committee members who previously chaired or vice-chaired the KanCare oversight committee said they had heard similar recommendations and expressed support for added transparency and oversight. The hearing record shows no testimony in opposition; the committee closed the hearing after conferee remarks.
Why it matters: The bill would change how the Department of Administration documents and defends procurement decisions for Medicaid MCO contracts, add a legislatively composed appeals mechanism, and create new deadlines for adopting procurement policies before July 1, 2026, if enacted into statute.
