Big Piece Of Plan For Balancing Kansas Budget Is In Trouble
An $80 million-dollar piece of Governor Sam Brownback's plan for balancing the next state budget is in trouble in the Legislature because a major health insurance company opposes it.
Budget Director Shawn Sullivan said in a statement yesterday that the governor's office is having active discussions with Aetna, legislators and the state Insurance Department about the disputed measure.
It would increase a fee paid by HMOs to 5.5 percent from 1 percent.
Three private health insurers that manage the state's Medicaid program would pay most of it.
Aetna told legislators last month that it would pay $12 million a year in additional fees and Kansas consumers would see higher premiums.
The Senate overwhelmingly approved the measure last month but it has stalled in the House.