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Lawmakers press KDHE and KLRD on provider reimbursement increases and caseload forecasting
Summary
Committee members asked state agency and legislative research analysts how provider reimbursement rate increases affect KanCare costs, federal matching and budget estimates; officials described the state budget appropriation process and how estimates are updated.
Committee members questioned KDHE officials and analysts from the Kansas Legislative Research Department about how increases in provider reimbursement rates flow through KanCare budgets and interact with the federal matching rate.
Representative questions focused on whether state-authorized increases to provider reimbursement translate into higher state costs, more federal dollars or internal reallocation. Bobbi Graff Hendrickson, deputy Medicaid director, and Sheena Schmidt of the Kansas Health Institute explained that higher provider rates increase total program costs; the FMAP determines how much of any increase the federal government pays. “When the state…
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