Kansas Health Philanthropies examine local impact of federal Medicaid cuts

David Jordan

United Methodist Health Ministry President

HUTCHINSON — Medicaid serves as a crucial source of health insurance coverage for Kansas families, including children, parents, seniors, individuals with disabilities, those in need of behavioral health support, and residents of rural communities. Congressional lawmakers are currently considering $880 billion in cuts to the Medicaid program, which would reduce Medicaid funding and terminate coverage for vulnerable Kansans.

The United Methodist Health Ministry Fund and REACH Healthcare Foundation recently partnered with experts from Manatt Health to shed light on the potential impacts of those cuts on Kansas over the next decade.

"Medicaid is the largest source of federal funds in Kansas and any cuts to the program will have severe economic and health impacts felt in every corner of the state," said Brenda Sharpe, President and CEO of REACH Healthcare Foundation.

According to Manatt's estimates, if Congress changed how Medicaid is funded (i.e., through a per capita cap) Kansas could see up to $347M in cuts in Medicaid funds in the first year enacted and $3.15 billion over ten years. As a result of the cuts, impacts to Kansans would likely include an increase in termination of coverage and benefits for vulnerable populations, rising personal medical debt, and the risk of more hospital closures across the state.

"The data is clear and deeply concerning. Kansas will lose billions of dollars in Medicaid funding if these proposed cuts are enacted, which will result in the termination of Kansans' health care coverage and put more hospitals at risk of closure," added David Jordan, President and CEO of United Methodist Health Ministry Fund. "We will all pay the price – higher costs, increases in local taxes, and less access to care – to offset these cuts. It's critical that lawmakers, healthcare providers, advocates, and the people of Kansas recognize the consequences before it's too late."

Medicaid provides health care coverage for over 366,000 Kansans, including nearly 31% of all Kansas children. It also covers 4 in 7 nursing home residents, and 1 in 4 working-age adults with disabilities.

Beyond the overall reductions of Medicaid funding analyzed as part of the proposed cuts, Kansas hospitals could see their Medicaid funding reduced by 22% through changes to the Medicaid State Directed Payment program, and 5-15% of current Medicaid enrollees could lose coverage over ten years if work reporting requirements are implemented.

Manatt estimated the one-year and ten-year impacts of Congress' proposed $880 billion in cuts to the federal Medicaid program, modeling the potential financial consequences for states. While Manatt's estimates were developed before final legislative proposals are expected to be enacted by Summer 2025, they align closely with policy parameters, options and effective dates outlined by the Congressional Budget Office (CBO) and previously introduced legislative proposals.

The REACH Healthcare Foundation and the United Methodist Health Ministry Fund have prepared a brief summarizing key findings of the Manatt report and Jordan and Sharpe say they will continue to closely monitor Congressional actions. As more specific policies are adopted, Manatt will update its estimates and also consider the interactive effects of those changes.

REACH Healthcare Foundation is a charitable foundation dedicated to improving health coverage and access to quality, affordable healthcare for uninsured and medically underserved people. The foundation focuses its support in a six-county service area that encompasses Allen, Johnson, and Wyandotte counties in Kansas and Cass Jackson and Lafayette counties in Missouri, as well as the City of Kansas City, Missouri. Learn more about the foundation at www.reachhealth.org.

The United Methodist Health Ministry Fund (Health Fund) is a statewide health foundation working to improve the health of all Kansans since 1986 by funding innovative ideas, sparking conversations and convening those who can make a difference. Learn more at www.HealthFund.org

Manatt Health is a leading professional services firm specializing in health policy, healthcare transformation, and Medicaid redesign. Their modeling draws upon publicly available state data including Medicaid financial management report data from the Centers for Medicare and Medicaid Services, enrollment and expenditure data from the Medicaid Budget and Expenditure System, and data from the Medicaid and CHIP Payment and Access Commission. The Manatt Health Model is tailored specifically to Kansas and has been reviewed in consultation with key stakeholders including the Kansas Hospital Association.