Current Report Articles
Provider Tax Update

KanCare (May 23, 2025) – As of Wednesday, May 22, the state had not received approval of the waiver request to increase the provider tax to six percent, or the preprint to allow the expenditure of the funds generated by the increase. On Tuesday, May 20, the Kansas Department of Health and Environment sent a letter to all of the tax-paying hospitals indicating the May 31, 2025, tax due date is suspended until the state receives approval from the Centers for Medicare & Medicaid Services. They will send out a notification to hospitals when the approval is received.

The continued delay in approval reflects the backlog of requests at CMS. CMS continues to ask technical questions of KDHE to help them understand the landscape of Kansas hospitals, which means our request is currently under review. Unfortunately, this is likely to delay the 2025 Q1 Medicaid quarterly enhancement payment until after July 1, 2025.

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--Audrey Dunkel