KAHSA staff attended the House Appropriations Committee hearing Tuesday November 24. State Budget Director Duane Goossen presented the Governor's revised budget for SFY 2010 which includes 10% cuts to Medicaid Provider reimbursement rates. He noted that the Governor has instructed all agencies to develop SFY 2011 reduced resource budgets assuming another 5% reduction in budget.

The Governor's initial press release indicated the cuts would be sought for the fourth quarter (April, May, June, 2010) to address the anticipated additional $260 M state budget shortfall. However, in a new twist, Goossen clarified that the cuts would likely be instituted prior to that period and that the state savings created by these cuts may not be recognized by the state until the fourth quarter.

In follow up conversation with KDOA officials today, KAHSA learned that KHPA, SRS and KDOA heads are meeting this week and next to determine when and how to implement the cuts. Typically KDOA goes through a lengthy rate adjustment process which includes publishing proposed rates, receiving comment, etc. It is clear that officials are exploring options to speed up the rate adjustment.

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