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Monday, January 03, 2005

New year, old problems, new opportunities

[David Klepper, "Health care takes center stage at Kansas Legislature," The Kansas City Star, 29 December 2004.]

As the health care financing crisis grows more severe, it is increasingly engouraging to see that state leaders in Kansas are beginning to acknowledge the problem and act. Following on the heels of Governor Sebelius's Healthy Kansas initiative, Kansas legislators are now weighing their options for dealing with health care costs, as well.

Republican leaders have not formally proposed anything, but they say they are looking into health savings accounts, in which workers and employers would contribute money to a tax-free savings account set up for medical expenses.

Reducing health-care costs was identified as the No. 2 priority for the upcoming legislative sessions in all 50 states by the National Conference of State Legislatures. Continuing budget restraints was the No. 1 issue.

Kansas' economic picture is brighter this year, but few expect to be able to cover the state's medical bills without raising revenue or restructuring the system to cut costs.

β€œMedicaid is eating us alive,” said Senate President-elect Steve Morris, a Hugoton Republican. β€œThe cost of premiums keeps going up. It's putting pressure on small business and on the state. We all agree on this much: It's a big problem and it's getting bigger. Health-care issues are here to stay.”

Nationwide, more than $270 billion is spent annually on Medicaid, the nation's largest health-care program.


The announcement today that Kansas legislators "must" spend more on education will no doubt overshadow this growing problem, however. Let's hope that legislators follow the Governor's request to tackle both issues this session.

[Stephen A. Moses, "Project Proposal: Controlling Medicaid Long-Term Care Costs," Submitted to Members of the Kansas State Legislature, The Flint Hills Center, January 2004.
Matthew Hisrich, Staying the Course: Medicaid Reform in Kansas, The Flint Hills Center for Public Policy, January 2004.]

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