1. Kansas Hospital Association December 2008 Kansas Legislative Update December 2008

2. Kansas Hospital Association December 2008 2008 Kansas Elections Kansas Senate 31 Rs; 9 Ds Leadership: Sen. Steve Morris Sen. Derek Schmidt Senate President Majority Leader Kansas House 77 Rs; 48 Ds Leadership: Rep. Mike O’Neal Rep. Ray Merrick Speaker of the House Majority Leader

3. Kansas Hospital Association December 2008 What will the 2009 Legislative Focus be on… State of Kansas Budget –FY 09: ($669.3 M) –FY 10: ($879.8 M) –FY 11: ($1,830.0 M) –FY 12: ($2,494.9 M) Energy Immigration Transportation Health Reform

4. Kansas Hospital Association December 2008 KHPA’s “Simpler Reform” Plan Original Package with few changes: –Increase Tobacco Product Assessment –Statewide Smoking Ban –Expand Medicaid Coverage for Parents/Caretakers –Tobacco Cessation for all Medicaid Recipients –Implement Statewide Community Health Record –Assist Small Businesses in Purchasing Affordable Health Insurance –Develop Medical Home Model for Medicaid and State Employee Health Plan

5. Kansas Hospital Association December 2008 What About Kansas Medicaid? Approximately 400,000 Kansans receive health insurance through Medicaid/SCHIP –More than 1 million Medicaid payments made each month –Medicaid claims paid average $180M per month Medicaid Budget: –$2.2B in FY07 (all funds, all agencies) –KHPA Medicaid programs = $1.2B –FY 2009/10 Projected Annual Growth = 5.5% Comparison to Other States: –Overall spending per beneficiary is above average –Coverage of children is typical –Spending on aged and disabled is above average –Coverage of low-income adults is very low

6. Kansas Hospital Association December 2008 Medicaid Transformation Medicaid Transformation Committee Created Recommendations given to KHPA Board in Fall 08 Policy Goals… –Cost-effectiveness –Program integrity –Coordinate program delivery –Quality outcomes –Health promotion and a medical home –Gaps in coverage and access

7. Kansas Hospital Association December 2008 Wichita Center for Graduate Medical Education Objective: Sustaining the number of primary care physicians in Kansas Over 55% of the graduates stay in KS Total funding request: $9.6M –2008 Legislative Approps: $2.5M –KBA Award: $6.1 over 3 years Legislature created the Physician Workforce & Accreditation Taskforce –Recommendations to be forthcoming

8. Kansas Hospital Association December 2008 Health Focus for 2009 Health Reform –Tobacco tax increase –Statewide smoking ban Workforce Related Issues –Wichita Center for Graduate Medical Education –Nursing/Allied Health Shortages –Nurse Staffing Ratios Tort Reform –Increase in the non-economic damages cap of $250K Insurance Related Topics –Mandates on Bariatric Surgery; Cancer Clinical Trials; several others