Download (PDF, 128KB)

KANCARE EXPANSION IS VITAL FOR RURAL KANSAS

• KanCare contributes to rural economic development in many important ways:
  • Enhances access to health care services, which in turn improves health status, productivity, and quality of life;
  • Provides revenue that helps recruit and retain health professionals;
  • Supports the social services infrastructure; and
  • Contributes to the economy through revenue and job creation.[i]

• Rural Kansas counties have higher uninsurance rates than urban counties. The highest proportion of uninsured Kansans who would be eligible for KanCare expansion live in rural communities.[ii]

• Medicaid expansion helps stabilize rural hospitals.
  • The percentage of rural hospitals at risk of closure has nearly doubled in non-expansion states compared to expansion states.[iii]
  • In states that have not expanded Medicaid, many rural hospitals are struggling. These hospitals are often the largest employers in their communities, but many are now facing layoffs, even closure.  In Kansas, the failure to expand KanCare contributed to the closure of Mercy Hospital in Independence, resulting in the loss of 190 jobs.[iv]^,[v]
  • According to the National Rural Health Association, hundreds of rural hospitals across the U.S. are on the verge of closing due to financial pressures. The major cause for these pressures is states opting out of Medicaid expansion.  In addition to compromising the health of rural residents, a hospital closure causes lost jobs, lost economic activity, and lost vibrancy and quality of life in rural communities.  A small-town hospital closure costs about $1,000 in per capita income.[vi]

• Hospitals and clinics in expansion states report opening new facilities, buying new equipment, hiring new staff, and improving the delivery of care. Providers in non-expansion states continue to face substantial financial pressures.[vii]

• KanCare is a critical source of financial support for rural primary care providers who are the primary source of mental health care in many rural communities.[viii]

[i] Mueller, K. et al. (September 2012). The Current and Future Role and Impact of Medicaid in Rural Health, RUPRI Health Panel. Retrieved from http://www.rupri.org/Forms/HealthPanel_Medicaid_Sept2012.pdf

[ii] U.S. Census Bureau, Small Area Health Insurance Estimates (July 2016).

[iii] iVantage Health Analytics (2015). Vulnerability to Value: Rural Relevance under Healthcare Reform. Retrieved from https://www.ivantagehealth.com/news-release-february-2-2016/

[iv] Smith, A. (24 February 2015). Rural Hospitals Without Medicaid Expansion Struggle. Retrieved from http://hereandnow.wbur.org/2015/02/24/rural-hospitals-medicaid

[v] Voorhis, D. (9 September 2015). Kansas’ Medicaid opt-out partly to blame for Independence hospital’s closure. Retrieved from http://www.kansas.com/news/business/article34614009.html

[vi] North, I. (3 August 2015). Lack of Medicaid expansion hurts rural hospitals. Retrieved from http://www.starherald.com/news/local_news/lack-of-medicaid-expansion-hurts-rural-hospitals/article_a3e2e0d4-21ae-5db0-96fd-0136a2119384.html

[vii] Searing, A. and Hoadley, J. (June 2016). Beyond the Reduction in Uncompensated Care: Medicaid Expansion Is Having a Positive Impact on Safety Net Hospitals and Clinics. Georgetown University Health Policy Institute, Center on Children and Families. Retrieved from http://ccf.georgetown.edu/wp-content/uploads/2016/05/Medicaid_hospitals-clinics-June-2016.pdf

[viii] Mueller et al. (September 2012), The Current and Future Role and Impact of Medicaid in Rural Health, RUPRI Health Panel. Retrieved from http://www.rupri.org/Forms/HealthPanel_Medicaid_Sept2012.pdf