Bill Summary – FastDemocracy

Division of the Budget
Landon State Office Building                                                                        Phone: (785) 296-2436
900 SW Jackson Street, Room 504                                                                    adam.c.proffitt@ks.gov
Topeka, KS 66612                               Division of the Budget                             http://budget.kansas.gov
Adam Proffitt, Director                                                                          Laura Kelly, Governor

                                                   March 11, 2021

          The Honorable Richard Hilderbrand, Chairperson
          Senate Committee on Public Health and Welfare
          Statehouse, Room 445A-S
          Topeka, Kansas 66612
          Dear Senator Hilderbrand:
                    SUBJECT:      Fiscal Note for SB 241 by Senate Committee on Public Health and Welfare
                  In accordance with KSA 75-3715a, the following fiscal note concerning SB 241 is
          respectfully submitted to your committee.
                  SB 241 would require the Kansas Department of Health and Environment (KDHE) to
          contract with a non-profit managed care organization (MCO) to provide state Medicaid services
          to children under 18 years of age who were adopted out of foster care. The bill would also apply
          to children between 18 and 22 years of age who were adopted out of foster care and who are
          currently attending a public or private postsecondary educational institution. The bill would
          require Medicaid services to be provided beginning July 1, 2022. The bill establishes the
          requirements that each bidder would have to include in the bids to KDHE. KDHE would be
          required to submit any necessary requests to the U.S. Centers for Medicare and Medicaid Services
          (CMS) for approval to implement the provisions of the bill.
                  According to KDHE, children who are adopted out of foster care are currently eligible for
          Medicaid services through the state’s for-profit MCOs. KDHE indicates that assigning the
          children to a new, non-profit MCO would require additional expenditures to issue a Request for
          Proposal (RFP) and work with CMS to amend the state’s current 1115 Waiver. The RFP and
          waiver amendment processes would be lengthy and require extensive staff time and financial
          resources. KDHE indicates a portion of these costs would be offset by a reduction from using a
          non-profit MCO. Currently, the capitation rates paid to the for-profit MCOs include a 1.0 percent
          profit contingency. However, KDHE is unable to estimate the fiscal effect from the bill. The
          Department for Children and Families indicates the bill would have no fiscal effect on the agency.

                                                              Sincerely,

                                                              Adam Proffitt
                                                              Director of the Budget
          cc: Kim Holter, Children & Families
              Dan Thimmesch, Health & Environment
Statutes affected: 
As introduced: 38-2001