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Heartland Health Monitor
Tue April 29, 2014
KanCare Contractors Lost Money In First Year
The three private companies contracted to manage Medicaid services through KanCare lost money in the program's first year, according to a report released this week.
The total losses between the companies come to more than $100 million.
Rep. Jim Ward, a Wichita Democrat, is concerned that could lead to service reductions or the companies pulling out of the program altogether.
Secretary of the Kansas Department of Health and Environment, Robert Moser, says there were expected costs in the first year of the program for the companies that KDHE believes will decrease in future years.
“So, indeed, we’re not necessarily surprised that the cost of that first year was a little higher for the managed care companies,” said Moser.
The contract between the state and the private companies will last for at least three years. A legislative oversight committee met Tuesday to review the KanCare program's progress.