Contacts:
David Jordan, president and CEO, United Methodist Health Ministry Fund
508-246-6825 | david@healthfund.org
Brenda Sharpe, president and CEO, REACH Healthcare Foundation
913-322-6025 | brenda@reachhealth.org
Updated modeling report: Kansas to lose $3.9 billion in Medicaid funding under One Big Beautiful Bill, hospitals to lose $2.7 billion
Congress recently passed the One Big Beautiful Bill Act, which was signed into law July 4 by President Trump. This bill will cut an estimated $1 trillion from Medicaid and $300 billion from the Supplemental Nutrition Assistance Program (SNAP), removing health care and food assistance from millions of Americans. It will impact children, seniors and people with disabilities.
To better understand the impact on access to health care, the Kansas-based philanthropies United Methodist Health Ministry Fund and REACH Healthcare Foundation partnered with Manatt Health to model the impact this bill will have on Kansas’ Medicaid system over the next 10 years.
Using its Medicaid Financing model, Manatt analyzed how this bill will impact Kansas’ funding for its Medicaid program, called KanCare, and enrollment in the program. Of note, these estimates are understated. Manatt’s Medicaid Financing model estimates state impacts based on most of the key Medicaid provisions included in bill, including the impact of work requirements, six-month renewals, new restrictions on provider taxes and State Directed Payments (SDPs) for hospitals, and repeal of certain Medicaid eligibility simplifications.
Manatt’s estimates do not reflect the impact of changes to provider taxes and SDPs for providers other than hospitals, nor do they address changes to standards designed to ensure that provider taxes are “generally redistributive.”
The final bill included a $50 billion Rural Health Transformation Program, a relief fund created to help address the financial challenges for struggling rural health care providers. It will provide up to an estimated $811 million to Kansas to help offset funding losses due to the bill. However, that will not cover the complete funding gap created by the legislation.
Webinar
The Health Fund and REACH conducted a webinar on July 31 to share more information with fellow health advocates about the final modeling results. The slides from the presentation are available below, and the recording from the webinar will be added as soon as possible after the presentation.
PRESENTATION:
WEBINAR RECORDING: