Kansas: Study Highlights Budget Neutrality of Medicaid Expansion

A Manatt study commissioned by the Kansas Grant makers in Health concluded that if Kansas were to expand Medicaid, it may generate sufficient savings and revenue gains to cover the costs of expansion between 2016 and 2020. The State had earlier concluded that expansion would cost an average of $53 million from 2016 through 2020. The study found that the State would likely generate substantial savings and revenue as a result of expansion in excess of costs by: reducing State general fund expenditures for services that Medicaid would cover, accessing enhanced federal matching funds for populations eligible for Medicaid pre-expansion, and realizing increased revenue from the State's HMO privilege fee. Three expansion bills have been introduced in the legislature, though none have made it to a vote.

Louisiana: Governor-Elect Requests Medicaid Expansion Plan from Newly-Established Healthcare Transition Committee

Governor-elect John Bel Edwards (D) tasked his newly-formed healthcare transition committee with developing a Medicaid expansion plan, as well as evaluating the State's charity hospital and Medicaid managed care systems. The 44-member committee includes stakeholders and advocates across the healthcare spectrum and will be chaired by Ronnie Goux, President of the Louisiana Nursing Home Association, and Gary Wiltz, CEO of Teche Action Clinic. The committee's Medicaid expansion plan will come in addition to the analysis of Medicaid expansion options the Department of Health and Hospitals is developing at the behest of the State Senate Finance Committee.

South Dakota: Governor Supports Medicaid Expansion in Budget Address

In his fiscal year 2017 budget address, Governor Dennis Daugaard (R) expressed his continued support for Medicaid expansion, as long as State general funds are sufficient to cover State costs. Governor Daugaard referred to a plan he unveiled earlier this year that shifts costs that the State currently incurs on Medicaid services through the Indian Health Services (IHS) to the federal government. The Governor estimates annual State savings of $67 million in IHS-related Medicaid costs, which is enough to cover the $57 million estimated cost of Medicaid expansion in 2021, when the federal match rate for expansion drops to 90%. While the Governor noted that expansion is "not a done deal," his 2017 budget proposal includes $373 million in additional federal funding and 55 full-time State employees to assist with enrolling over 50,000 individuals into the program.