Medicaid provider reimbursement cut by 10 percent

In light of the State’s dire budget situation, Governor Mark Parkinson in late November directed all state agencies to reduce their budgets for the remainder of fiscal year 2010. As a result, fees for all Medicaid services provided were reduced by 10 percent; the ordered cuts are indefinite in duration and impact all service providers–including physicians and hospitals–equally.

In discussions with the Governor, KMS has expressed concern that declining reimbursement could adversely affect access to care for our state’s most vulnerable citizens. Medicaid rates have historically remained below both Medicare and private health insurance companies; further reductions in those already low reimbursements may, at best, result in physicians limiting the number of Medicaid patients they accept. At worst, physicians may opt to discontinue accepting new Medicaid patients altogether.

KMS will continue to communicate with the Governor, legislative leadership and the Kansas Health Policy Authority on this issue. Legislative testimony provided on this issue includes:

• House Committee on Aging & Long Term Care (January 19, 2010)