The U.S. Senate is considering changes to H.R. 1 (the “One Big Beautiful Bill Act”) that go beyond the House-passed version—and would significantly reduce hospital Medicaid reimbursement and undermine Kansas’ ability to fund care for vulnerable patients. 

While the House-passed version of H.R. 1 includes changes that were difficult but workable, the U.S. Senate has proposed more restrictive provisions - prompted in part by a Presidential memorandum issued June 6, outlining the Administration’s intent to ensure the Medicaid program does not pay providers through state directed payments at rates which are higher than Medicare, though many states like Kansas have in place, or are seeking approval of, payment levels that may exceed Medicare and are closer to the existing legal limit of average commercial rates (ACR).

The House-passed reconciliation bill would allow for a grandfathering of existing rates, which reimburse providers above the Medicare payment level for Medicaid services, upon enactment of the legislation. It is important to note current law requires Medicaid payment for providers to be sufficient to ensure beneficiary access to services and SDPs are used to augment historically low Medicaid provider payments, including for critical community services such as maternal and behavioral health.

If further restrictions on provider assessments and SDPs are enacted, Kansas hospitals stand to lose hundreds of millions of dollars, which undercuts Kansas’ ability to sustain hospital Medicaid reimbursement, particularly in rural and underserved areas. At a time when 67% of Kansas hospitals are already operating in the red, Congress must protect our ability to fund Medicaid fairly and sustainably.

Ask Senators Jerry Moran and Roger Marshall to protect Kansas Medicaid payment rates by opposing any Senate Finance Committee plan that further weakens the provider assessment and state-directed payment provisions adopted in the House version of H.R. 1.