United Methodist Health Ministry Fund
HUTCHINSON - Kansas stands to lose $3.897 billion in federal and state Medicaid funding under the Senate-approved version of the “One Big Beautiful Bill Act,” which will result in Kansas hospitals losing $2.65 billion in funding over 10 years.
Under the Senate plan, 13,000 Kansans are still projected to lose access to Medicaid for health insurance. Such losses would lead to higher uninsured rates and create more financial struggles for rural hospitals already on the brink of closure.
The Senate-approved bill includes more than $1.2 trillion in cuts to Medicaid when taking into account federal and state funding losses due to changes incorporated into the bill.
The Senate did include a $50 billion rural hospital relief fund to help offset funding losses, which would provide $811 million to Kansas hospitals. However, that still leaves hospitals billions short in Medicaid funding.
“We appreciate efforts to help our rural hospitals. However, it’s not enough,” said David Jordan, president and CEO of the United Methodist Health Ministry Fund. “It’s not a viable long-term solution. Our hospitals cannot afford to absorb billions of dollars in Medicaid cuts without cutting services and or possibly closing their doors. Our rural communities are aging and will only need more health care in the coming years – not less. This isn’t a sustainable solution to offsetting these losses, which will exacerbate the struggles our rural hospitals face.”
These results were recently released by Manatt Health, which conducted the analysis at the request of Kansas health philanthropies United Methodist Health Ministry Fund and REACH Healthcare Foundation. The two organizations wanted to better understand the financial and enrollment impacts of the latest bill, which implement deep cuts to Medicaid on top of reducing $300 billion from the Supplemental Nutrition Assistance Program (SNAP).
Medicaid, the public health insurance program that covers more than 366,000 Kansans, is funded jointly by the state and federal government. It provides health insurance for low-income parents, children, seniors and people with disabilities. Adults who do not have children do not qualify for Medicaid in Kansas.
The Senate proposal will have a direct and disproportionate impact on rural communities, where higher rates of residents rely on Medicaid for health insurance. In Kansas, more than half of rural hospitals are already at risk of closure. According to Manatt’s model, Kansas hospitals would lose $1.608 billion in federal Medicaid funding alone over 10 years, in addition to another $1.042 in state Medicaid funding for a combined $2.65 billion in lost funding.
Kansas already has more hospitals at risk of closure than any other state in the country. Sixty-three rural hospitals are currently at risk, and 87% of Kansas rural hospitals are operating in the red. These hospitals struggle to survive with existing federal funding. Provisions in the bill would cause them to lose billions, making it even harder to stay open. When rural hospitals close, it removes job opportunities in addition to access to health care, creating a ripple effect in small communities.
"This bill is a serious threat to the health and well-being of thousands of Kansans,” said Brenda Sharpe, president and CEO of REACH Healthcare Foundation. “Cutting Medicaid funding and SNAP would weaken the safety net that holds our communities together, especially in rural communities where health care options are already limited. This would move us further from a future where everyone has the opportunity to thrive. We strongly urge the House to consider the long-term consequences of this bill and vote to protect the programs that sustain our communities.”
Manatt said these estimates are understated due to a lack of publicly available data. In addition, the model did not speculate how Kansas would respond if it were faced with steep losses in funding. Without an investment of new state dollars, the state may have to constrain base payments to providers, eliminate or narrow eligibility and benefits. Coverage losses due to the bill’s changes to the Affordable Care Act’s Health Insurance Marketplace also couldn’t be modeled; however, they will result in additional Kansans losing health insurance.
“This bill makes sweeping changes to programs that help Kansas families access health care and put food on their tables,” Jordan said. “If approved, these changes will be devastating for Kansas families.
About the United Methodist Health Ministry Fund and REACH Healthcare Foundation
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.
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.
About Manatt Health
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.