Kansas Gov Says Marijuana Could Fund Medicaid

In an announcement Monday in Overland Park, Gov. Laura Kelly said she would be introducing a bill that would fund Medicaid expansion with revenue from medical marijuana.

“After nearly a year of challenges brought on by COVID-19, we need to use every tool at our disposal to protect the health of our workforce and our economy,” she said in a statement. “Getting 165,000 Kansans health care, injecting billions of dollars and thousands of jobs into our local economies, and protecting our rural hospitals will be critical to our recovery from the pandemic. By combining broadly popular, commonsense medical marijuana policy with our efforts to expand Medicaid, the revenue from the bill will pay for expansion.”

In previous legislation for Medicaid expansion, the state share of costs would have been paid for by a re-insurance program and a Medicaid expansion surcharge from Kansas hospitals. Those two would be gone, with marijuana revenue replacing them.

Under the bill, a person will be required to pay a premium not over $25 per person or $100 per family, with exceptions granted for hardships.

On the marijuana front, the bill calls for an advisory committee with appointments made by the governor, legislative leadership and chaired by the Secretary of the Department of Health and Environment.

KDHE will also be responsible for patients and their use of medical marijuana.

The Revenue Department would be responsible for licensure and regulation of producers, and the State Board of Healing Arts would be the one certifying prescribing physicians.

Medicaid expansion has been a top priority for the governor and Democrats, but is likely to face headwinds from a Republican supermajority. Legalizing medical marijuana will also prove tricky as well.

Republicans have argued that Medicaid expansion would be costly, and compared to other states, Kansas has taken small steps on the medical marijuana front. Kansas is one of only three states without legalized medical marijuana.

The latter issue has more traction than Medicaid expansion among lawmakers, and currently, there is already one bill in the Kansas House allowing for regulation of medical marijuana.

The governor’s proposal could solve the cost issue Republicans have with Medicaid expansion but is unlikely to sway opinions.

“If Medicaid expansion is revenue neutral like we’ve always been told, why does it need a revenue source to pay for it?” tweeted House Majority Leader Dan Hawkins, R-Wichita.

Advocates for Medicaid expansion came out in support of the governor’s announcement.

“We remain unified in urging the Legislature to act on expanding Medicaid now. On its own, expanding KanCare will prove to be a budget positive proposal that will create thousands of jobs,” said a statement from the Alliance for a Healthy Kansas.

Titus Wu, Topeka Capital-Journal USA TODAY NETWORK