Medicaid costs for Kansas will be higher than expected in 2016

Medicaid will cost the state more than the Legislature expected when it passed a budget in June.

Budget officials met last week to review caseloads for the state’s Medicaid, foster care, and welfare systems, determining that the overall cost of the state’s human services would be $48.9 million more than the amounts approved by the Legislature.

Some of that funding will come from federal sources, but $16.7 million will have to come from the state’s general fund, according to a memo released this week by the Legislative Research Department.

Most of the funding difference can be attributed to KanCare, the state’s privatized Medicaid system, which provides health coverage to poor and disabled Kansans.

KanCare will cost $40.1 million more from all funding sources for the 2016 fiscal year, which began in July, with $19.4 million of that coming out of the state general fund. The memo says this extra cost can be attributed to a slight growth in population, rising pharmaceutical costs and increases in costs associated with the Affordable Care Act insurers fee.

All told, the state will put nearly $1 billion from its general fund toward KanCare for the fiscal year.

The increased costs come at the same time the state is grappling with less revenue than expected. Revenue came in a combined $47 million below estimates for September and October. The state will revise revenue estimates Friday and is expected to face a budget deficit.

This story was originally published November 5, 2015 at 5:03 PM with the headline "Medicaid costs for Kansas will be higher than expected in 2016."