(Aug. 19, 2026) – Earlier this week, the Kansas Department of Health and Environment convened its budget and legislative stakeholder group to provide agency updates and to hear budget and policy priorities from health care providers and advocacy organizations ahead of the 2027 legislative session.

KDHE provided several updates, noting that the agency will undergo a transition next year under the new governor's administration. KDHE also said continuing the stakeholder process will be important for maintaining continuity through that transition.

The agency also discussed several emerging federal issues. KDHE indicated it plans to continue following established vaccination schedules from organizations such as the American Academy of Pediatrics and the American College of Obstetricians and Gynecologists, despite recent changes in federal recommendations. Officials acknowledged uncertainty about whether that approach could affect federal funding. KDHE also cautioned providers to expect increased auditing by KanCare managed care organizations as federal officials intensify their focus on waste, fraud and abuse.

Lastly, the agency provided an update on the Rural Health Transformation Program. Kansas has been asked by the Centers for Medicare & Medicaid Services to budget approximately $222 million for the program's second year, consistent with its first-year award. However, KDHE staff expressed confidence Kansas could ultimately receive additional funding, noting Kansas is ahead of many states in implementing its program and remains well positioned for future funding.

Following KDHE's updates, stakeholder organizations presented their budget and legislative priorities for the upcoming session.

The KanCare Advocates Network emphasized eliminating Medicaid waiver waiting lists and encouraged continued collaboration between KDHE and the Kansas Department for Aging and Disability Services. The organization also discussed ongoing Medicaid rate studies and the need to establish an adequate reimbursement baseline. In response, KDHE indicated it is examining network adequacy standards and whether additional state action may be warranted.

Kansas Action for Children raised concerns about the sustainability of funding for early childhood programs, including the need to maintain appropriate payment for newborn screening, which has exceeded the program's $5.0 million annual expenditure cap. The organization encouraged continued state funding to leverage available federal matching funds and raised awareness of the unbundling of global maternity codes beginning Jan. 1, 2027, to ensure the state is prepared to implement this change. The Alzheimer's Association also requested funding to provide training for community health workers caring for individuals with Alzheimer's disease.

Kansas Action for Children raised concerns about the sustainability of funding for early childhood programs, including the need to maintain appropriate payment for newborn screening, which has exceeded the program's $5.0 million annual expenditure cap. The organization encouraged continued state funding to leverage available federal matching funds and raised awareness of the unbundling of global maternity codes beginning Jan. 1, 2027, to ensure the state is prepared to implement this change. The Alzheimer's Association also requested funding to provide training for community health workers caring for individuals with Alzheimer's disease.

The Kansas Hospital Association presented several hospital budget and policy recommendations to KDHE to strengthen access to care, support the health care workforce and improve hospital sustainability. KHA asked the agency to consider the following:

• Increase the Behavioral Health Bed Add-On Payment from $10 million to $11 million to account for additional behavioral health beds added by Kansas hospitals and to provide a modest inflationary adjustment.
• Evaluate the Medicaid Intermediate Swing Bed reimbursement methodology to better align Medicaid payments with recent changes to the federally required Medicare cost-reporting methodology. The current mismatch creates significant disincentives for Critical Access Hospitals to provide post-acute care to Medicaid patients.
• Reauthorize the Health Care Upskilling and Training Grant Program at $2 million. KDHE awarded the full $1 million appropriation last year to 28 organizations, leaving additional applicants with more than $728,000 in proposed workforce projects unfunded.
• Continue advancing centralized credentialing by maintaining the centralized credentialing provisions in KanCare 3.0 and by working with stakeholders through the credentialing verification organization being piloted under the Rural Health Transformation Program to move Kansas toward a true centralized credentialing process.

During open discussion at the meeting's conclusion, stakeholders asked KDHE about the recent federal Office of Inspector General audit of Kansas Medicaid. KDHE officials noted the audit was based on 2023 data and said the agency has since made several changes through the KanCare 3.0 contracts to address the identified issues. According to KDHE, Kansas is now nearly in compliance with all issues identified in the audit. Agency officials also said they are scheduled to meet with the MCOs next week to continue addressing outstanding items.