Kansas could see new KanCare inspector general under House bill

Lawmakers have advanced a measure to reinvigorate the inspector general position for KanCare after federal officials issued an audit critical of the privatized Medicaid program.

The inspector general is tasked with identifying waste and abuse in Medicaid and improving the program’s operations. The position has been vacant since 2014.

The position would move to the Attorney General’s Office under legislation given first-round approval in the House on Monday. A final vote could come Tuesday.

Supporters of moving the post say it would provide the inspector general with greater independence. The position now is under the Kansas Department of Health and Environment, the agency that oversees KanCare, which provides health coverage for people with disabilities and low-income individuals.

The KDHE has said it has been unable to attract qualified applicants.

“It appears it probably wasn’t going to get filled, so we decided it was time to make a change and move it,” said Rep. Dan Hawkins, R-Wichita, who chairs the House Health Committee.

In a January letter, the federal Centers for Medicare and Medicaid Services to Kansas found KanCare “substantively out of compliance with Federal statutes and regulations, as well as its Medicaid State Plan,” based on an October review of the program.

The CMS also rejected the state’s request to extend its authorization of the KanCare program. The federal government’s authorization is set to expire at the end of 2017, but state officials say they plan to request an extension soon.

In denying the extension, the CMS said the program’s failure to meet federal standards put the health and safety of participants at risk.

“We need rigorous, continued oversight of this program,” said Rep. John Wilson, D-Lawrence.

Lawmakers rejected an amendment from House Minority Leader Jim Ward, D-Wichita, to require legislative approval of changes state officials want to seek to KanCare’s federal authorization. The vote was 54-68.

“What this says is if you have a creative, new idea for how to deliver Medicaid in Kansas, bring it to the Legislature, run it as a bill, and we’ll have an up or down vote after everyone has input,” Ward said.

But Hawkins said Gov. Sam Brownback’s administration is working through problems with the program. A group headed by Lt. Gov. Jeff Colyer has been meeting over the past few weeks to develop adjustments to KanCare, he said.

This story was originally published March 27, 2017 at 1:19 PM with the headline "Kansas could see new KanCare inspector general under House bill."