(Sept. 12, 2025) – Kansas Hospital Association staff are pleased to share we were notified late Tuesday, Sept. 9, that the 2025 provider tax preprint, which allows the state to draw down federal matching funds to match the provider tax at six percent, was approved!
As with any significant achievement, it took a team to reach this goal. Our congressional delegation, led by Senator Moran and his team, played a crucial role in the negotiations on HR 1 this summer, which maintained the viability of the 2025 provider tax plan and kept it moving forward in the approval process. At the state level, Governor Laura Kelly, the Kansas Department of Health and Environment leadership and the Medicaid finance team went above and beyond in working with KHA to ensure timely responses to CMS requests; thereby, keeping the 2025 provider tax changes moving forward in D.C. It is valued partnerships like these that will help Kansas hospitals achieve our vision of optimal health for Kansans and Kansas hospitals.
Last week, KHA sent an update to each of the hospitals with their 2025 Q1 Medicaid quarterly enhancement payment amount, based on the six percent tax rate. In that update, we provided a timeline that would begin once approval was received from CMS. Here is the updated timeline:
- The week of Sept. 8, KDHE will submit the request to the state treasurer to transfer the funds from the HCAIP account to the Medicaid managed care organization for distribution to the hospitals and send the payment amounts to the managed care organizations.
- The week of Sept. 15, the funds will be transferred to the MCOs on Thursday and should arrive in their bank accounts on Friday, Sept. 19.
- Beginning the week of Sept. 22, the MCOs will distribute the funds to the individual hospitals within the next two weeks.
Please note: This will be the first time Healthy Blue distributes the Medicaid quarterly enhancement payments. Please let us know if you have not received a distribution from Healthy Blue by Oct. 1, and we will assist you in tracking down the funds.
The tax payment that was due to the state on May 30, 2025, but was delayed pending approval of the 2025 waiver and preprint, will now be due on Oct. 31, 2025. Please note, this does not apply to CAH and REH hospitals, which will not begin paying the tax until May 2026, pending CMS approval.
If you have any questions, please don't hesitate to contact us.
--Audrey Dunkel