(Aug. 14, 2020) – Over the last year, the Kansas Legislature has approved changes to the Medicaid Provider Assessment Program, first through the 2019 budget bill and later through 2020 House Bill 2168. Those changes include increasing the assessment rate up to 3 percent of net inpatient and outpatient revenue for perspective payment system hospitals, on July 1 or Jan. 1 following approval of the change by the Centers for Medicare & Medicaid Services.
To date, CMS has not approved the change to the program because doing so would exceed the budget neutrality cap on the current KanCare waiver. Kansas Hospital Association staff have been working with the Kansas Department of Health and Environment, the governor's office, our congressional delegation, and CMS to resolve this issue so that the increased assessment rate and the change in payment structure can move forward. We are currently working with KDHE on an alternative approach to raising the budget neutrality cap that we expect to have submitted by early September, if not sooner. That will allow us to work with KDHE to determine another path, if necessary, beginning in October.
In the interim, there will be no changes to the current program. The 2020 legislature appropriated funds to cover any shortfall in the program so that provider rate reductions related to the provider assessment program will not be necessary. Please do not hesitate to contact us if you have any questions or concerns.