2017 Summary | Bill Tracker
By: Dodie Wellshear, Government Relations Consultant
Summary of Legislation
This document contains a summary of legislation relevant to the policy priorities and professional practice of the Kansas Academy of Family Physicians. Included are bills passed by the Legislature and some that did not advance in 2017.
SB 32 – Medical Student Loan Act and Medical
Residency Bridging Program—Eligible Practice Areas; Restrictions on Outsourcing
SB 32 amends the Medical Student Loan Act
(Act) and the statute establishing the Kansas Medical Residency Bridging
Program (Program), and restricts the outsourcing and privatization of certain
state operations and facilities.
Student Loan Act
bill amends the Act by expanding the eligible practice areas loan recipients
may engage in to meet their loan obligations under the Act. The bill adds
general psychiatry and child psychiatry to the definitions of “approved
postgraduate residency training program” and “service commitment area.” The
bill also allows a loan recipient under the Act to meet the loan obligation to
engage in the full-time practice of medicine and surgery in a service
commitment area if the person served as a full-time faculty member of the
University of Kansas School of Medicine (KUMC) in general or child psychiatry.
Additionally, the bill allows a loan recipient to satisfy the obligation to
engage in the full-time practice of medicine and surgery in a service
commitment area by performing at least 100 hours per month of on-site mental
health care at a medical facility, a community mental health center, Larned
State Hospital (LSH), Osawatomie State Hospital (OSH), or any facility that
provides mental health services and is operated by a state agency.
bill requires, subject to appropriations, KUMC to enter into medical student
loan agreements with six individuals who commit to satisfying their loan
obligations by practicing or teaching, as described above, general or child psychiatry.
The bill creates the Psychiatry Medical Loan Repayment Fund in the State
Treasury, and all moneys credited to the Fund shall be expended only for
expenses associated with general or child psychiatry students under the Act.
The bill specifies that no moneys shall be transferred from the Comprehensive
Grant Program account of the State Board of Regents to the Medical Loan
Repayment Fund or the Psychiatry Medical Loan Repayment Fund or expended for
any related purposes.
Medical Residency Bridging Program
bill amends the statute establishing the Program by expanding the eligible
practice areas. The bill adds persons in a mental health care residency
training program in general or child psychiatry to the list of persons with
whom KUMC may enter into residency bridging loan agreements.
bill requires, subject to appropriations, KUMC to enter into residency bridging
loan agreements with three medical residents training in general or child
psychiatry. The bill creates the Rural Health Bridging Psychiatry Fund in the
State Treasury, and all moneys credited to the Fund shall be expended only for
expenses associated with general psychiatry or child psychiatry residents under
the Program. The bill specifies that no moneys shall be transferred from the
Comprehensive Grant Program account of the State Board of Regents to the Rural
Health Bridging Psychiatry Fund or expended for any related purposes.
on Outsourcing and Privatization of Certain State Operations and Facilities
bill prohibits the outsourcing or privatization of any operation or facility of
LSH, OSH, or any facility that provides mental health services and is operated
by a state agency, including, but not limited to, any action to transfer all or
any part of the rated bed capacity at LSH or OSH without specific authorization
by the Legislature. Additionally, the Secretary for Aging and Disability
Services shall not be allowed to transfer or assign any person admitted to an
institution for the purpose of circumventing the outsourcing or privatization
restrictions imposed in KSA 2016 Supp. 75-3373.
bill takes effect upon publication in the Kansas Register.
HB 2026 - Medicaid (KanCare) Process and Contract
HB 2026 changes the Kansas Program of Medical Assistance (KMAP) by amending
law and creating in law processes for managed care organizations (MCOs)
providing Medicaid services by providing for the services of an independent
auditor, and by creating an external independent third-party review process
Department of Health and Environment (KDHE) Processes
bill requires the Secretary of Health and Environment (Secretary) to provide
accurate and uniform patient encounter data to participating health care
providers upon request within 60 calendar days, including, but not limited to,
the amount billed by revenue code and procedure code. The bill authorizes KDHE
to charge a reasonable fee for furnishing the data.
Care Organization Processes
bill requires the Secretary to compel the MCOs to provide quarterly in-person
education for participating health care providers regarding billing guidelines,
reimbursement requirements, and program policies and procedures utilizing a
format approved by the Secretary and incorporating information collected
through semi-annual surveys of participating health care providers.
MCO is required to offer quarterly in-person training on remark codes and
Health Insurance Portability and Accountability Act of 1996 (HIPAA) standard
denial reasons and any other denial reasons or remark codes specific to the
bill requires the Secretary to compel any MCO providing state Medicaid or
Children’s Health Insurance Program (CHIP) services under the KMAP to provide
documentation to a health care provider when the MCO denies any portion of any
claim for reimbursement submitted by the provider, including a specific
explanation of the reasons for denial and utilization of remark codes,
remittance advice, and HIPAA standard denial reasons.
bill requires the Secretary to develop the following uniform standards to be
utilized by the MCOs:
standardized enrollment form and a uniform process for credentialing and re-
credentialing health care providers who have signed contracts or participation
agreements with any MCO;
requirements, periodic review, and reporting of reductions in and limitations
for prior authorization for health care services and prescriptions;
utilization review of readmissions that complies with applicable federal
statutory or regulatory requirements for the Medicaid program or CHIP,
prohibiting such reviews for any individual covered by KMAP who is
readmitted with a medical condition as an inpatient to a hospital more
than 15 days after the patient’s discharge;
grievance, appeal, and state fair hearing process that complies with
applicable federal and state statutory procedure requirements, including
any statutory remedies for timely resolution of grievances, appeals, and
state fair hearings, imposed upon MCOs providing state Medicaid and CHIP
that each MCO, within 60 calendar days of receiving an appeal request,
provide notice and resolve 100 percent of provider appeals, subject to
remedies, including, but not limited to, liquidated damages if provider
appeals are not resolved within the required time.
Secretary is required to procure the services of an independent auditor to
review, at least once per calendar year, a random sample of all claims paid and
denied by each MCO and the MCO’s subcontractors. Each MCO and its
subcontractors are required to pay any claim the independent auditor determines
to be incorrectly denied. The bill provides each MCO and its subcontractors may
be required to pay liquidated damages, as determined by KDHE. Each MCO and its
subcontractors are required to pay the cost of audits conducted under the
provisions for an independent auditor.
independent auditor provisions in the bill expire on January 1, 2020.
to Nursing Facilities with a Change in Ownership
the bill, the Secretary requires each MCO to pay 100 percent of the State’s
to nursing facilities for current Medicaid-enrolled residents during any
re-credentialing process caused by a change in ownership of the nursing
Pharmacy or Pharmacist
and after July 1, 2017, a MCO providing state Medicaid or CHIP services under
the KMAP is prohibited from discriminating against any licensed pharmacy or
pharmacist located within the geographic coverage area of the MCO that is
willing to meet the conditions for participation established by the KMAP and to
accept reasonable contract terms offered by the MCO.
the Secretary is required to adopt rules and regulations as necessary to
implement the requirements regarding data production and training,
standardization, the provision of an independent auditor, payment to nursing
facilities with a change in ownership, and non-discrimination against a
licensed pharmacy or pharmacist, prior to January 1, 2018.
Independent Third-party Review Process
bill requires implementation of an external review process for providers who
have received denial of KMAP services and have exhausted the MCO’s internal
Care Organizations Notification Requirements
letter from a MCO to a participating health care provider reflecting a final
decision of the MCO’s internal appeal process is required to state:
provider’s internal appeal rights within the MCO have been exhausted;
provider is entitled to an external review; and
requirements to request an external review.
are subject to a penalty paid to the provider, not to exceed $1,000, for
failing to meet the above requirements in a final decision letter.
and after January 1, 2020, a provider who has been denied a health care service
to a recipient of medical assistance or a claim for reimbursement to the
provider for a health care service rendered and who has exhausted the MCO
internal written appeals process is entitled to an external review of the MCO’s
for External Review
request an external review, an aggrieved provider is required to submit a
written request to the MCO within 60 calendar days of receiving the final
decision resulting from the MCO’s internal review process. The written request
is required to include each specific issue and dispute directly related to the
adverse final decision issued by the MCO, the basis upon which the provider
believes the MCO’s decision to be erroneous, and the provider’s designated
five business days of receiving a request, the MCO is required to:
with the provider, in writing, receipt of the request;
KDHE of the request; and
the recipient of the medical assistance of the request, if related to denial of
the health care service.
the MCO fails to satisfy the notification requirements, the provider
automatically prevails in the review.
15 days of receiving a request, the MCO is required to submit to KDHE all
documentation submitted by the provider in the course of the MCO’s internal
appeal process and provide the MCO’s designated contact information. If the MCO
fails to satisfy these requirements, the provider automatically prevails in the
by Office of Administrative Hearings
bill requires an external review automatically extend the deadline to request a
hearing before the Office of Administrative Hearings (OAH) of the Department of
Administration pending the outcome of the external review and, upon conclusion
of the external review, the external independent third-party reviewer
(reviewer) is required to forward a copy of the decision and new notice of
action to the provider, recipient, applicable MCO, KDHE, and the Kansas
Department for Aging and Disability Services (KDADS). When a deadline to
request a hearing before the OAH has been extended pending the outcome of an
external review, all parties are granted an additional 30 days from receipt of
the review decision and notice of action to request a hearing before the OAH.
bill requires KDHE and KDADS to immediately request a continuance from the OAH
if a recipient of medical assistance or participating heath care provider files
a request for a hearing before the OAH regarding a claim for which the provider
has filed a request for external review. KDHE and KDADS are also required to
forward the decision of the review to the OAH for consideration by the hearing
officer together with any other facts of the case.
receiving notification of a request for an external review, KDHE is required
- Assign the review to a reviewer;
- Notify the MCO of the identity of the reviewer; and
the provider of the identity of the reviewer.
is required to deny a request for external review if the requesting provider
fails to exhaust the MCO’s internal appeal process or submit a timely request
for an external review.
bill allows multiple appeals to the external review process regarding the same
recipient of medical assistance, a common question of fact, or interpretation
of common applicable regulations or reimbursement requirements to be determined
in one action upon request. The bill allows other initial denials of claims to
be added to such review prior to final decision and after exhaustion of the MCO
internal appeals process if the claims involve a common question of fact or
interpretation of common applicable regulation or reimbursement requirements.
Limitations and Requirements
reviewer is allowed to review only the documentation submitted by the provider
in the course of the MCO’s internal appeal process. The reviewer is required to
conduct a review of any claim submitted to the reviewer and issue a final
decision to the provider, the MCO, and KDHE within 30 calendar days from
receiving the request for review from KDHE and the documentation submitted by
the provider during the MCO internal review process. The reviewer is allowed to
extend the time to issue a final decision by 14 calendar days upon agreement of
ten business days of receiving a final decision of the external review, the MCO
is required to notify the impacted recipient of the medical assistance and the
participating health care provider of the final decision, if related to the
denial of the health care service.
party is allowed to appeal the final decision to the OAH within 30 calendar
days from receiving the final decision of the reviewer.
final decision of any external review directs the losing party of the review to
pay an amount equal to the costs of the review to the reviewer. Any payment
ordered is stayed pending any appeal of the review. If the final outcome of any
appeal is to reverse the decision of the external review, the losing party of
the appeal is required to pay the costs of the review to the reviewer within 45
calendar days of entry of the final order.
is required to adopt rules and regulations to implement the provisions of the
external review process prior to January 1, 2020.
HB 2027 - Anatomic Pathology Billing;
Institutional Licenses; Immunity from Civil Liability
HB 2027 makes several amendments to the Kansas Healing Arts Act.
bill allows a physician providing services to a patient pursuant to a medical
retainer agreement to bill for anatomic pathology services when the patient’s
bill meets certain specifications. The patient’s bill for such services must
identify the laboratory or physician that performed the services, disclose in
writing to the patient the actual amount charged by the physician or laboratory
that performed the service, and be consistent with rules and regulations
adopted by the State Board of Healing Arts for appropriate billing standards
applicable to such services when furnished under the agreement.
bill also amends a statute governing institutional licenses and restrictions
placed on practice privileges of these license holders. The bill reinserts
language removed in 2014 to allow for reinstatement of an institutional license
of an individual who was issued an institutional license prior to May 9, 1997,
and who is providing mental health services under a written protocol with a
person who holds a Kansas license to practice medicine and surgery other than
an institutional license.
the bill amends the law regarding immunity from liability in civil actions for
persons reporting, communicating, and investigating (reporting) certain
information concerning alleged malpractice incidents. The bill provides
immunity to a person reporting an alleged malpractice incident from civil
liability that may otherwise be incurred in an action resulting from reporting
such information and requires a court to allow the person reporting, whom the
court finds to have reported in good faith, a reasonable amount for attorney’s
fees and expenses incurred in defending a civil action.
HB 2030 - Minimum
Age for Vaccination; Reporting Requirement; Opt Out
the Kansas Pharmacy Act to change, from 18 to 12 years of age, the minimum age
for a person to whom a pharmacist or a pharmacy student or intern working under
the direct supervision and control of a pharmacist is authorized to administer
a vaccine, other than the influenza vaccine, pursuant to a vaccination protocol
and with the requisite training. Continuing law requires immunizations provided
under the authorization of the Kansas Pharmacy Act be reported to appropriate
county or state immunization registries. The bill allows the person vaccinated
or, if the person is a minor, the parent or guardian of the minor to opt out of
the registry reporting requirement.
bill also requires that, on and after July 1, 2020, physicians and other
persons authorized in Kansas to administer vaccines to a person report the
administration of a vaccine in the state to the state registry maintained for
this purpose by the Secretary of Health and Environment (Secretary). However,
the bill allows the person vaccinated or, if the person is a minor, the parent
or guardian of the minor to opt out of the registry reporting requirement. The
manner and form of the reporting is determined by the Secretary. For this
purpose, the bill defines “physician” as a person licensed to practice medicine
HB 2079 –
Increasing Privilege Fees on HMOs; Restoring Medicaid Provider Cuts; KanCare
HB 2079 would create law to allow
supplemental Medicaid reimbursement for certain providers of ground emergency
medical transportation services and would create an intergovernmental transfer
program relating to Medicaid managed care, ground emergency medical transport
services, and those services provided by certain emergency medical services
personnel in prestablization and preparation for transport.
addition, the bill would increase the annual privilege fee assessed on every
health maintenance organization (HMO), change the privilege fee payment
structure, create a priority system for use of revenue from the assessment,
change accounting procedures for the portion of the assessment dedicated to the
Kansas Newborn Screening Fund, and establish a limit on the amount to be
transferred to the Kansas Newborn Screening Fund.
addition to the rate of payment that a provider would otherwise receive for
Medicaid ground emergency medical transportation services, a provider would be
eligible for supplemental Medicaid reimbursement to the extent provided by law,
if a provider meets the following conditions during the reporting period:
ground emergency medical transportation services to Medicaid beneficiaries;
- Is enrolled as a Medicaid provider for the period being claimed; and
- Is owned or
operated by the state, a political subdivision, or local government, that
employs or contracts with persons or providers who are licensed or
permitted to provide emergency medical services in the state of Kansas,
including hospitals and private entities to the extent permissible under
eligible provider’s supplemental reimbursement would be required to be
calculated and paid as follows:
supplemental reimbursement to an eligible provider would be equal to the
amount of federal financial participation received as a result of the
claims submitted pursuant to federal law;
- The amount
certified in conformity with federal regulations and eligible for federal
financial participation, when combined with the amount received from all
other sources of reimbursement from the Medicaid program, could not exceed
or be less than 100.0 percent of actual costs for ground emergency medical
transportation services, as determined pursuant to the Medicaid state
supplemental Medicaid reimbursement would be distributed exclusively to
eligible providers under a payment methodology based on ground emergency
medical transportation services provided to Medicaid beneficiaries by
eligible providers on a per-transport basis or other federally permissible
Kansas Department of Health and Environment (KDHE) would be required to obtain
approval from the federal Centers for Medicare and Medicaid Services (CMS) for
the payment methodology to be utilized prior to making any supplement Medicaid
bill would state the Legislature’s intent to enact the provisions of the bill
without any State General Fund expenditures.
provider, as a precondition to receiving the supplemental Medicaid
reimbursements, would be required to enter into and maintain an agreement with
KDHE for the purposes of implementing the payments and reimbursing KDHE for the
costs of administering the payments.
non-federal share of the supplemental Medicaid reimbursement submitted to CMS
for purposes of claiming federal financial participation would be paid only
with funds from governmental entities owned and operated by the State, a
political subdivision, or local government, that employs or contracts with
persons or providers who are licensed or permitted to provide emergency medical
services in Kansas, including hospitals and private entities to the extent
permissible under federal law and who are certified as described below.
in the supplemental Medicaid reimbursement program by an eligible provider
would be voluntary. In order to seek supplemental Medicaid reimbursement, an
applicable governmental entity would be required to do the following:
- Certify, in
conformity with federal regulations, the claimed expenditures for the
ground emergency medical transportation services are eligible for federal
evidence supporting the certification as specified by KDHE;
data, as specified by KDHE, to determine the appropriate amounts to claim
as expenditures qualifying for federal financial participation; and
maintain, and have readily retrievable any records specified by KDHE to
fully disclose reimbursement amounts to which the eligible provider is
entitled, and any other records required by CMS.
would be required to promptly seek any necessary federal approvals for the
implementation of supplemental Medicaid reimbursements and would be allowed to
limit the reimbursements to those costs allowable under Title XIX of the
federal Social Security Act. If federal approval is not obtained for
implementation of the supplemental Medicaid reimbursements, the section of the
bill related to the reimbursements would not be implemented.
would be required to submit claims for federal financial participation for the
expenditures allowable under federal law for the services related to
requirements for participation in the reimbursements. KDHE would also be
required to submit any necessary materials to the federal government to provide
assurances that claims for federal financial participation would include only
those expenditures allowable under federal law.
would be able to utilize intergovernmental transfers or certified public
expenditures to implement the supplemental Medicaid reimbursement subject to
provisions and requirements of the bill.
would be required to design, and implement, in consultation and coordination
with providers eligible for the program, an intergovernmental transfer program
(Program) relating to Medicaid managed care, ground emergency medical transport
services and those services provided by emergency medical services personnel at
the emergency medical responder, emergency medical technician, advanced
emergency medical technician, and paramedic levels in the prestabilization and
preparation for transport.
provider would only be eligible to transfer public funds to the State pursuant
to the Program in an applicable reporting period if a provider meets both of
the following conditions:
ground emergency medical transport services to Medicaid managed care
enrollees pursuant to a contract or other arrangement with a Medicaid
managed care plan; and
- Is owned or
operated by the State, a political subdivision, or local government that
employs or contracts with persons or providers who are licensed or
permitted to provider emergency medical services in Kansas, including
hospitals and private entities to the extent permissible under federal
the extent intergovernmental transfers are voluntarily made by and accepted
from, an eligible provider described above or a governmental entity affiliated
with an eligible provider, KDHE would be required to make increased capitation
payments to applicable Medicaid managed care plans. The increased capitation
payments would be required to be at least actuarially determined amounts to the
extent permissible under federal law. Funds associated with intergovernmental
transfers would be required to be used to fund additional payments to Medicaid
managed care plans.
managed care plans would be required to enter into contracts or contract
amendments with eligible providers for the disbursement of increased capitation
payments related to intergovernmental transfers.
Program developed would be implemented on the date federal approval is
obtained, and only to the extent intergovernmental transfers from the eligible
provider, or the governmental entity with which it is affiliated, are provided
for that purpose.
would be required to implement the Program and increased capitation payments on
a retroactive basis, as approved by CMS and to the extent permissible by
federal law. Participation in the Program would be voluntary on the part of the
transferring entities for purposes of all applicable federal laws.
bill would specify the Program would be required to be implemented without any
additional State General Fund expenditures. As a condition of participation in
the Program, eligible providers or the governmental entity affiliated with an
eligible provider, would be required to agree to reimburse KDHE for any costs
associated with implementing the Program. Intergovernmental transfers would be
subject to a fee of up to 20.0 percent of the non-federal share paid to KDHE
and would not be allowed to count as a cost of providing the services not to
exceed 120.0 percent of the total amount.
condition of participation in the Program, Medicaid managed care plans,
eligible providers, and governmental entities affiliated with eligible
providers would be required to comply with any requests for information or
similar data requirements imposed by KDHE for purpose of obtaining supporting
documentation necessary to claim federal funds or to obtain federal approvals.
Program would be implemented only if and to the extent federal financial
participation is available and would not otherwise be jeopardized and any
necessary federal approvals had been obtained. KDHE would be allowed to return
or not accept intergovernmental transfers, or adjust payments as necessary to
comply with federal Medicaid requirements. The State and KDHE would be required
to implement whatever program CMS approves for use under the act.
Privilege Fee and Medical Assistance Fee Fund
annual privilege fees assessed on every HMO would be increased to 5.77 percent
for the reporting period beginning January 1, 2018.
bill would direct the moneys collected from this annual assessment be deposited
to the credit of the Medical Assistance Fee Fund (in KDHE). The bill would also
create in the State Treasury, the Community Mental Health Center Improvement
Fund to be used by the Kansas Department for Aging and Disability Services and
would restrict use of the moneys in this fund for purposes related to Community
Mental Health Centers.
bill would specify moneys in the Medical Assistance Fee Fund must be expended
in the following priority:
restore any reductions initiated during calendar year 2016 to provider
reimbursement rates for state Medicaid services;
$3.5 million in FY 2018, and $5.0 million every fiscal year thereafter, would
be transferred to the Community Mental Health Center Improvement Fund to be
used for purposes related to Community Mental Health Centers, the amount
transferred could not exceed $5.0 million in any one fiscal year;
the estimated amount necessary to fund the Newborn Screening Program for the
ensuing fiscal year would be transferred to the Kansas Newborn Screening Fund
and such amount could not exceed $2.5 million in any one fiscal year; and
any remaining moneys would be expended for the purpose of Medicaid medical
bill would also remove the July 1, 2018, sunset date on the increased privilege
[Note: Under current law, the privilege fee is 3.31
percent for the period beginning January 1, 2015, and ending December 31, 2017,
and 2.00 percent on and after January 1, 2018. In addition, the moneys
collected from the privilege fee are to be deposited to the credit of the State
General Fund, except during the period beginning July 1, 2015, and ending on
June 30, 2018, when the moneys are to be deposited to the credit of the Medical
Assistance Fee Fund.]
Privilege Fee and Payments
and after January 1, 2018, each HMO would be required to submit a report to the
Commissioner of Insurance (Commissioner), on or before March 31 and September
30 each year, containing an estimate of the total amount of all charges to
enrollees expected to be collected during the current calendar year.
filing each March 31 report, HMOs would be required to submit payment equal to
half of the privilege fee that would be assessed for the current calendar year
based on the reported estimate. Upon filing each September 30 report, HMOs
would submit a payment equal to the balance of the privilege fee that would be
assessed for the current calendar year based upon the reported estimate.
privilege fee payments are submitted annually on or before March 1 and based on
actual collections in the previous calendar year.
amount owed by an HMO during any calendar year in excess of the estimated
amount would be assessed by the Commissioner and would be due and payable upon
issuance of the assessment. Any amount overpaid by an HMO would be reconciled
upon assessment of privilege fees in the ensuing calendar year and credited
against future privilege fee assessments or refunded in cases when the HMO is
no longer doing business in Kansas.
Newborn Screening Fund
or before July 1 of each year, the Director of Accounts and Reports would be
required to determine the amount credited to the Medical Assistance Fee Fund
from the privilege fee assessment and transfer the estimated amount necessary
to fund the Newborn Screening Program for the ensuing fiscal year to the Kansas
Newborn Screening Fund. The amount could not exceed $2.5 million in any one
the transfers are to be determined and made monthly from a portion of the
privilege fee revenue transferred to the State General Fund, although the revenue
has been deposited in the Medical Assistance Fee Fund since July 1, 2015.
Conference Committee agreed to remove the contents of HB 2079 (pertaining to
water district vehicles), insert the contents of HB 2180, as amended by the
House Committee, and further agreed to amend the bill as follows:
- Change the
start date of the privilege fee increase from July 1, 2017, to January 1,
2018, and remove the January 1, 2023, decrease;
language to establish the semi-annual payment structure;
language to specify the funding for the Newborn Screening Program would be
transferred from the Medical Assistance Fee Fund and the maximum amount of
the transfer would be $2.5 million per fiscal year;
- Change the
amount of the privilege fee revenue dedicated to Community Mental Health
Centers from $15.0 million in FY 2019 and beyond to $5.0 million per
fiscal year and establish the amount would not exceed $5.0 million per
fiscal year; and
- Add the
contents of SB 186 (pertaining to supplemental Medicaid reimbursement), as
passed by the Senate Committee of the Whole.
Information for HB 2079 Conference Committee Report
estimated HB 2079, as modified by the action of this Conference Committee,
would increase revenue for FY 2018 by $108.6 million, all to the Medical
Assistance Fee Fund, and would increase expenditures by $161.3 million,
including $71.8 million from the State General Fund, for additional managed
care organization (MCO) expenditures and restoration of Medicaid provider rate
reductions resulting from the May 2016 State General Fund allotment. After the
$3.5 million transfer for Community Mental Health Centers, additional revenue
could be used to offset State General Fund expenditures, making the net effect
a reduction in State General Fund expenditures of $33.3 million. [Note: including the Governor’s recommendations for FY
2018, the net impact would be a reduction in State General Fund expenditures of
estimated, for FY 2019, there would be increased revenue of $144.6 million, but
a State General Fund revenue decrease of $72.5 million. There would be an
estimated increase in expenditures of $226.7 million, including $100.6 million
from the State General Fund. After the $5.0 million transfer for Community
Mental Health Centers, the net effect would be a reduction in State General
Fund expenditures of $111.5 million for FY 2019. [Note: including the Governor’s recommendations for FY
2019, the net impact would be increased State General Fund expenditures of
addition, according to the fiscal note prepared by the Division of the Budget on
SB 186, as introduced, enactment of provisions related to supplemental Medicaid
reimbursement and the intergovernmental transfer program would increase
expenditures for KDHE by $577,925, including $288,963 from the State General
Fund, for FY 2018 for a contract to train staff and collect and analyze cost
data. The increase in revenue and expenditures of $6.3 million for FY 2019
would net to no impact. KDHE also estimates an additional 0.5 FTE position
would be necessary for both FY 2018 and FY 2019 to implement the provisions.
Any fiscal effect associated with provisions from SB 186 is not reflected in The FY 2018 Governor’s Budget Report.
Legislation Not Passed
HB 2044 – KanCare Expansion, Bridge to a Healthy Kansas
HB 2044 would have established the KanCare
Bridge to a Healthy Kansas Program (Program). The Kansas Department of Health
and Environment (KDHE) would be required to administer and promote the Program
and provide information to potential eligible individuals who live in medically
underserved areas of the state. The bill modified the eligibility requirements
for the Kansas Medical Assistance Program, on or after January 1, 2018, to
include any non-pregnant adult under 65 years of age who is a U.S. citizen or
legal resident and who has been a resident of Kansas for at least 12 months,
whose income does not exceed 133 percent of the federal poverty level (FPL), to
the extent allowed under the federal Social Security Act as it exists on the
effective date of the bill, and subject to the requirements of the Program. The
bill would require referral to workforce training programs, create a Program
Drug Rebate Fund and a Program Privilege Fee Fund, create a health insurance
coverage premium assistance program, address federal denial and approval of financial
participation, require submission of a waiver request to the federal
government, require various Program reports to the Legislature, and create a
Program Working Group.
the bill would have required the Secretary of Health and Environment
(Secretary) to include reimbursement for clubhouse rehabilitation services
within the Medicaid program on and after the effective date of the bill,
subject to the limits of appropriations. The bill would authorize the Secretary
to enter into contracts with certified clubhouse providers and require the
contracts be entered into by July 1, 2017, with an expiration date of July 1,
2020. The bill would limit reimbursement under the contracts to $1.0 million
for any one fiscal year. The bill defines “clubhouse” and requires a report be
made to select legislative committees. The bill takes effect upon publication
in the Kansas
HB 2205 – Requiring Meningitis
HB 2205, as amended, would have added
meningitis to the list of required vaccinations specified under KAR 28-1-20(b).
The vaccination would be required at no earlier than age 11 with a booster at
age 16 or later.
Kansas Department of Health and Environment (KDHE) administrative regulation
referenced in the bill would require each susceptible child to receive the
following vaccinations before enrolling in any Kansas school: diphtheria,
hepatitis B, measles (rubeola), mumps, pertussis (whooping cough),
poliomyelitis, rubella (German measles), tetanus, and varicella (chickenpox). A
religious exemption and an exemption for a child whose physical condition is
such that tests or inoculations would seriously endanger the life or health of
the child are specified under current law (KSA 72- 5209(b)).
HB 2231 – Increasing the Tax on
Cigarettes and Other Tobacco Products
HB 2231 would increase the state’s
cigarette and tobacco products taxes on July 1, 2017. The bill would increase
the cigarette tax to $2.79 a pack (from $1.29 a pack) and increase the tobacco
products tax to 65- percent of the wholesale price (from 10.0 percent). The
bill would establish an inventory tax for all cigarette and tobacco products on
hand as of July 1, 2017. The inventory tax would be $1.50 per pack for
cigarettes and would be due on October 31, 2017. The inventory tax would be
55.0 percent of the wholesale sales price for tobacco products on hand as of
July 1, 2017 and the inventory tax would be due on July 31, 2017.
bill would also create the Cigarette and Tobacco Cessation Fund to be
administered by the Kansas Department of Health and Environment (KDHE) to
promote the cessation of cigarette and tobacco usage. The first $5.0 million in
cigarette and tobacco products tax revenue collected each year would be
deposited in the Cigarette and Tobacco Cessation Fund.
Note: Bill descriptions provided by the Kansas Legislative