Kansas Medicaid officials prepare for mass coverage renewal as federal health emergency winds down

20,000 renewals to be sent out each month

by Noah Taborda, Kansas Reflector

Topeka — Leaders of the state-run Medicaid program expect the newly renewed federal public health emergency to end in July, along with continuous KanCare eligibility, leading to coverage changes for thousands of Kansans.

During the federally declared health emergency, Kansans were able to keep Medicaid coverage regardless of changes to their household situation. The requirement of continuous eligibility drove Medicaid enrollment up by 19.1% across the nation, but once the emergency ends, everyone covered will be required to undergo the renewal process.

The emergency is slated to end July 15, and Kansas officials say there will be a 60-day notice before the declaration expires.

Current guidance from the Centers for Medicare and Medicaid Services allows states up to 12 months to initiate renewals and 14 months to complete them. Sarah Fertig, the state Medicaid director, said Kansas would spread the renewal process out over 12 months so as not to overwhelm staff.

“We wouldn’t be able to process all of those cases immediately,” Fertig told legislators Wednesday on the Joint Committee on Home and Community Based Services and KanCare Oversight. “Each of those cases requires a determination of whether that person is currently eligible for Medicaid. We must obtain information from them. We need to do an assessment. There are human hands on every one of these cases. We cannot just run a report and say we are terminating everybody.”

According to a report by the Urban Institute, almost 16 million Americans enrolled in Medicaid during the public health emergency could lose coverage. In Kansas, the expectation is 20,000 renewals sent out each month.

Tanya Palmer, director of Medicaid eligibility for the Kansas Department of Health and Environment, said one area of focus for preparations is ensuring adequate staffing. She said aggressive recruiting strategies have cut vacancies by 8% in the last quarter.

“This positions us in the best position possible to handle the current intake but also the additional intake that we know that we’ll receive when the federal public health emergency ends,” Palmer said. “We are expecting probably at least double intake monthly post-public health emergency, so it is balancing act being able to process the applications that are a result of open enrollment, the renewals due normally, as well as renewals we may have delayed processing.”

Palmer said Kansas has historically seen 40% lose eligibility during renewal. Usually, the state reviews medical cases annually or whenever members report new information.

Additional federal funds drawn down from the extra Medicaid enrollment will continue through the end of September. This additional 6.2% funding has amounted to nearly $520 million through Dec. 31.

A March Kaiser Family Foundation survey of states’ preparations for the renewal process showed only about half of the states had a plan to manage the outstanding eligibility and renewal actions. Many states still have not made key decisions about how to manage this resumption of eligibility redeterminations.

Across the 20 states able to report such data, about 13% of Medicaid enrollees are expected to be disenrolled when the continuous enrollment requirement ends.

The renewal process and the potential for thousands of Kansans to lose health insurance coverage was a primary concern for several stakeholders presenting before legislators during the joint committee meeting.

Luanne Kibby, systems advocacy manager for the SKIL Resource Center, worried this in tandem with the Legislature’s interest in blocking Gov. Laura Kelly from rebidding the contract for KanCare could lead to Kansans being removed for resolvable reasons.

Heather Braum, health policy adviser with Kansas Action for Children, also raised concerns about the impact this will have on the families of policyholders.

“When high volumes of Medicaid redeterminations happen within a short time period, eligible kids are much more likely to be negatively impacted, lose their coverage and will need to reapply for that coverage,” Braum said.
“Your oversight of the KanCare program along with the detailed attention of KDHE KanCare staff at future committee meetings will help mitigate the impact of these coming changes.”

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.
See more at https://kansasreflector.com/2022/04/21/kansas-medicaid-officials-prepare-for-mass-coverage-renewal-as-federal-health-emergency-winds-down/

New revenue projections give Kansas a $3.1B surplus as governor pushes for food sales tax cut

Next year’s revenues increase by $407.8M in forecast, enough to cover $402.5M cost of ending state sales tax on food

by Sherman Smith, Kansas Reflector

Topeka — A revised economic forecast for Kansas projects the state will collect $407.8 million more than previously expected in the upcoming fiscal year, adding to a budget surplus that could be used to eliminate the 6.5% state sales tax on food.

Gov. Laura Kelly, a Democrat seeking reelection this year, has made the elimination of the sales tax on food a cornerstone of her campaign. Republicans have favored an approach that would phase out the tax over several years, as long as revenue numbers remain strong, while eying other potential tax cuts and criticizing the governor for vetoing a tax bundle three years ago.

The new revenue estimate, which is tempered for inflation and includes all of the legislation already signed by the governor, shows the state would have a $2.7 billion surplus entering July and a $3.1 billion surplus in another 12 months. The elimination of the sales tax on food would reduce revenue by an estimated $402.5 million.

“I can’t get out of this room without making another plug, specifically with inflation happening, that this does reaffirm the governor’s position that we can clearly immediately repeal the entirety of the state level food sales tax on groceries in Kansas effective July 1,” said Adam Proffitt, the state budget director, during a news conference Wednesday at the Statehouse. “These numbers do put enough into the cushion there.”

The Consensus Revenue Estimating Group, composed of state analysts and university economists, produced the revised forecast. The projections reflect spikes in oil and gas prices, payroll growth constrained by the limited pool of available workers, struggles in the manufacturing sector, and an expected reduction in net farm income.

“The good news is, even with the inflation running as high as it is, right now, the real GDP for the state of Kansas is forecasted well into the positive territory,” Proffitt said. “So a lot of good things happening across the Kansas economy. A lot of folks are at work. A lot of folks are making money.”

The projected surpluses include the budget and tax bills the governor recently signed, as well as school funding obligations the Legislature has not yet passed. A potential transfer of $1 billion into the state retirement system isn’t part of the equation.

Lawmakers on Monday will return to Topeka to wrap up work for the current legislative session, which includes putting the final touches on the state’s spending blueprint and considering an assortment of tax cuts.

Kelly appeared Wednesday at Jamboree Foods in Norton, just south of the Nebraska border, to tout her plan to “axe the tax” on food.

“Kansans are finding relief from inflation on groceries by traveling to our neighboring states, and that’s unacceptable,” Gov. Kelly said. “That trip for savings hurts our Kansas businesses and makes it difficult for local stores to stay open. Eliminating the state tax on groceries would keep that money in the Kansas economy.”

Republican Attorney General Derek Schmidt, who is running against Kelly in this year’s governor’s race, said the governor is “not being up front” about the impact of her veto of legislation in 2019 that included a phased reduction of the state sales tax on food. The bill included large tax breaks for multinational corporations and other tax provisions.

“I would have signed that bill into law, and as a result Kansans would already have some relief from Joe Biden’s out of control inflation at the grocery store,” Schmidt said. “Once again, the Legislature is left to clean up Laura Kelly’s mess.”

Schmidt urged lawmakers to resist the temptation of a spending spree with the new revenue forecasts.

“Legislators also should fully fund public schools as promised, reduce or eliminate the state sales tax on groceries, and then place the rest of this windfall in a rainy day fund,” Schmidt said.

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.
See more at https://kansasreflector.com/2022/04/20/new-revenue-projections-give-kansas-a-3-1b-surplus-as-governor-pushes-for-food-sales-tax-cut/

Congresswoman sponsors legislation to focus on supply issue

by Murrel Bland

Congress is working on legislation that addresses the national supply chain issue.

That was the message from U.S. Rep. Sharice Davids, D-3rd Dist., who was the keynote speaker Friday, April 15, at the Congressional Forum.

The forum is a function of the Kansas City, Kansas, Area Chamber of Commerce. About 60 persons attended the luncheon meeting at Children’s Mercy Park.

Rep. Davids said Republicans and Democrats have come together to help solve the supply issue. She said that shortage is particularly acute when it comes to microchips.

The legislation has passed the House; a conference committee is working on the differences in the U.S. Senate bill. She said that the shortage has caused manufacturers such as General Motors with an assembly plant in Fairfax to shut down production for certain periods. She and U.S. Senator Jerry Moran, a Kansas Republican, are among those sponsoring this legislation.

Rep. Davids also addressed the workforce issue. She commended Johnson County Community College for its commercial truck driving school and Kansas City, Kansas, Community College for its technical education courses providing hands-on training for such jobs as machinist.

Rep. Davids said that the economy is getting back to “near normal.” Last year, 6 million new jobs, a record, were created, she said. During the height of the Covid pandemic, many small businesses were helped with the federal Paycheck Protection Program, she said.

Rep. Davids is serving her second term in Congress. She is expected to seek a third term.

Murrel Bland is the former editor of The Wyandotte West and The Piper Press. He is an advisory director of Business West.