As Kansas' $3.9B Medicaid contract enters legislative limbo, 3 payers watch carefully

Kansas lawmakers are going back and forth on rebidding the state's $3.9 billion Medicaid contract, which could impact the three payers who currently hold it, according to Sunflower State Radio

Gov. Laura Kelly, a Democrat, aims to rebid the current contract, with plans to issue a request for proposals in October. The timeline would allow the state to select new payers for the contract before the current one expires in 2023. 

However, a Republican-led bill approved Feb. 21 by the state's House Health and Human Services Committee seeks to delay the timeline for a year, potentially pushing back the decision long enough for a new governor to helm the process following upcoming elections. 

The bill would extend the current contract for a year, but the bill's critics said no one — including payers — have testified in support of an extension. If passed, CMS would need to also sign off on the extension. 

The delay would also require lawmakers and regulators to head up "substantive or material" changes to Kansas' Medicaid program. 

Currently, United Healthcare, Sunflower State Health Plan and Aetna Better Health for Kansas hold state Medicaid contracts. 

Partisan governors have played a key role in determining which payers earn a seat at the Medicaid table. Former Republican Gov. Jeff Colyer replaced Amerigroup Kansas with Aetna, but Ms. Kelly has since criticized Aetna for allegedly falling short on delivering Medicaid services. 

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