April 21, 2023

Governor Kelly Signs Budget!
Today, Governor Laura Kelly signed the state’s budget, House Bill 2184, which allocates funding for Fiscal Year 2023, Fiscal Year 2024, and Fiscal Year 2025. The budget allows the state to continue its path of economic growth through targeted investments in workforce development, health care, and affordable housing.

While the Governor did line-item veto one KDADS budget item (using Federal dollars to expand PACE), the nursing home rebase, Medicaid add-on payment and the increase to HCBS spending all remained intact.

Click here for a link to the Governor’s press release.
Click here for a list of items that were vetoed.

Work will begin soon with KDADS determining how the Medicaid add-on will be distributed. Rest assured that KHCA/KCAL will be at the table representing your best interest and ideas. Look for a special reimbursement committee meeting soon. 

Below is a brief look at what we achieved:

1. Added an additional 34.5 million in all funds including 14 million of State General Funds (SGF) to the Governor’s Budget recommendation.
a.     Result - Rebases State Fiscal Year (SFY) 2024 Nursing Facility rates using the average of the three most recent cost reports and inflation based on the midpoint of the most recent cost report year.  The fiscal note according to KDADS would be a total of 72 million in all funds with 29 million being SGF. The current proposed budget only asks for 37.5 million in all funds with 15 million being SGF. This would fund the statutorily required amount to the limits they are currently held to.
 
2. Added new funds of $24,671,128 SGF, 61.68 million all funds. To establish an add-on for nursing homes based on the percentage of Medicaid residents that they serve.
a.     Formula: 3,083,891 Medicaid days (from 2021 cost report) X $20 = $61,677,820 All funds. $24,671,128 SGF. Distribute per Medicaid resident based on the percentage of Medicaid Residents as reported on annual cost report with a range of added dollars per day from $2 for the homes serving the lowest amount of Medicaid residents up to $25 per day for homes who serve over 80% Medicaid residents.
 
Distribution
3. Added an additional 4.7 SGF, 11 million all funds to the HCBS/FE funding for licensed adult care homes.
Continued increases in staffing costs, food costs, energy costs and nearly everything else, we are requesting a 10% increase to the Frail Elder (FE) rate on units of care in licensed adult care homes. The cost is estimated at 11 million dollars in all funds with 4.7 million in SGF. This would bring the per unit (15 minutes) from $5.04 to $5.54.
 
We owe a debt of gratitude to the Legislators who hear you, value you, and want to help sustain you. Many thanks must also go the lobby team of John Federico and Stephen Duerst. As always, I am honored and privileged to serve you and thank you for this opportunity.
Linda MowBray
President/CEO
(785) 267-6003
Kansas Health Care Association and the Kansas Center for Assisted Living
1100 SW Gage Blvd Topeka, KS 66604
PH: 785-267-6003 FAX: 785-267-0833