House Republican Health Care Plan

KanCare for a Healthy Kansas...

Some features of KanCare include:

No mandates for employers or individuals
No new taxes
Expands the private sector and shrinks government and the uninsured
Long term stability and flexibility

KanCare builds on the strengths of the Kansas health care system.  Right now health care system in Kansas is like a wobbly, three-legged stool – divided unevenly between growing government programs (23%), shrinking private health insurance coverage (65%), and the uninsured 10.9%.  We strengthen the wobbly three-legged stool to a table with four sturdy legs. 

Leg 1: Make Commercial Insurance more affordable

Section 125 plans allow consumers to use pre-tax dollars to pay for health care. Through tax credits and low cost plans we make Section 125 plans widely available, so every Kansan saves 15% immediately. 
Expand the commercial market and encourage more insurers and plans to hold down costs through competition.
Emphasize Availability, Affordability, and Portability

Leg 2:KanInsure to transition Medicaid and uninsured patients into the private market using targeted approaches

There are many different reasons people are uninsured or on Medicaid.  We will use targeted approaches to help them find stable health insurance.  Some examples:
      - Individuals who are in between jobs and lost their insurance can use vouchers/tax credits to keep insurance.
      - Provide seed money to encourage association plans targeted on small communities, business groups, ethnic organizations.
      - Children with Medicaid can be placed on their parent’s family plan with vouchers or credits

Leg 3: Medicaid Reform – New MediKan

Goal: Preserve and stabilize safety net. 
Use recommendations of the National Governors Association and meet new federal guidance of the Deficit Reduction Act of 2005.
The HPA will work with the federal government for new programs to stop waste and fraud, help seniors get more home health rather than nursing homes, wellness initiatives, and other waivers.
MediKan expands choices of doctors and health plans.
Patients choose from many benefit packages with some specially designed for diabetes care, children, seniors, etc.
Use consumer driven health plans.  Medicaid recipients get a Health Opportunity Account.  The state puts money into the account for the patient to use for co-pays, glasses, weight loss programs, etc.  We can even reward patients if the quit smoking or avoid the ER.
MediKan gives the state more options in case contractors have problems.

Leg 4: Strengthen Charity Care for a smaller pool of uninsured

Reduce the number of uninsured.
Strengthen free care clinics.
Create incentives for providers to give more free care.

KEYS TO KANCARE:

Long term stability is assured through a Trust Fund.
One time windfalls like tobacco settlement money or the sale of nonprofits would go into a private foundation.  We also would dedicate portion of premium taxes to the foundation and encourage private resources give to the foundation.  Proceeds are returned annually to the state to match federal dollars for KanCare.

An Insurance Exchange Different from the Massachusetts Connector
Our model is different from a Massachusetts Connector.  We listened to problems that many have brought to light.

We take the Massachusetts Connector’s positive aspects to facilitate transactions but avoid its government regulatory bureaucracy.  Our model is based on the publicly traded New York Stock Exchange. The NYSE facilitates transactions, eliminates bureaucracy, and pools payments from multiple buyers/sellers for all who wish to participate.  It is not a government regulator.

KanCare creates an insurance exchange that would exist in the private sector without regulatory power and without supplanting brokers and insurers.  It includes all insurers and all plans in the state—the whole market.  It would facilitate transactions like pooling payments to subsidize health premiums, give choices to uninsured and Medicaid recipients, share data and simplify insurance card processing. 

 

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