Kansas governor and Senate Republican leader in talks to find Medicaid expansion deal

Jan. 2--TOPEKA -- Kansas's Democratic governor and the Senate Republican leader are discussing Medicaid expansion ahead of the upcoming legislative session in hopes they can reach a deal clearing the way for the state to provide health coverage to tens of thousands of uninsured residents.

Gov. Laura Kelly said in an interview with The Kansas City Star and The Wichita Eagle on Thursday that she is in talks with Senate Majority Leader Jim Denning, the Overland Park Republican who offered his own expansion plan this fall. Denning's office later confirmed the discussions.

"I don't want to jinx it, so I'll just let it go where we are talking and I'm confident that we'll get something," Kelly said, when asked if the two are close to an agreement.

Lawmakers convene on Jan. 13.

A deal between Kelly and Denning would mark a breakthrough in the debate over expanding the state-administered program that currently provides health coverage to some 400,000 Kansans. Estimates suggest more than 100,000 additional people would enroll in Medicaid if Kansas became the 38th state to expand.

Denning's chief of staff, Ethan Patterson, said he is "feeling very positive we can work this out to where all sides can come to an agreement." He added that it is a "work in progress."

"We're all just trying to work on it and see what we can get done and what we can get passed on all sides. So hopefully we can get there," Patterson said.

Patterson also indicated he expects a Medicaid expansion plan to be filed before the start of the session. Senate Democrats have already filed a bill, but Patterson it would be a different proposal.

Kansas lawmakers have fought for years over expansion, which is a permitted under the Affordable Care Act. Critics contend it would create a new entitlement costing the state millions. If Kansas expands eligibility to residents earning 138 percent of the federal poverty line ($25,750 for a family of four), the federal government would pay 90 percent of the costs. The state picks up the remainder.

Denning's influence over the Republican caucus could be enough to assure passage of a compromise package in the Senate, which was a stumbling block for supporters last year. Senate President Susan Wagle, a Wichita Republican who is running for U.S. Senate, opposes expansion.

Denning, who is expected to face a tough re-election campaign, rolled out his expansion plan in October. It features a dual-track approach that expands Medicaid and provides re-insurance to health plans sold on the federal exchange. Essentially, Kansas would provide insurance to insurance companies, incentivizing them to participate in the exchange and lower premiums.

Kelly on Thursday called Denning's decision to offer a plan a positive development.

"Because that does give us something to work together on and see if we can reach a compromise and consensus on, on a bill that will implement Medicaid expansion in a way that will actually work and be sustainable," she said.

But Democrats have also called Denning's plan overly complex, and Kelly has previously cautioned against creating "extra bureaucratic red tape." Some conservative Republicans have said they are disappointed the plan lacks work requirements.

"I don't follow the Democrats talking points about the draft Senate plan being too complex. It is straightforward, in fact, I usually explain it visually with my grandchildren's building blocks," Denning said in a written statement in November.

In the same statement, Denning said it would be "very productive" for Kelly to discuss his plan with his office "in order to see how we can move this policy forward in a bipartisan fashion and do what is best for Kansans."

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