The state of Kansas could save approximately $22.5 million each year, if only a change in how schools are reimbursed through Medicaid for school-based healthcare services, according to an audit conducted by Kansas Medicaid Inspector General, Steven Anderson recently revealed. The audit revealed that having Managed Care Organizations, known as MCOS, reimburse schools for healthcare services rather than the state of Kansas reimbursing schools for Medicaid services, would net significant taxpayer savings.
MCOS receive monthly payments from Medicaid for beneficiaries. Meanwhile, schools are receiving fee-for-service payments from the state to provide services to some of those beneficiaries in schools. The monthly payments to MCOS could be used to pay for those services. The state Medicaid program would also save money by ending the processing of fee-for-service payments by the Kansas Department of Health and Environment and contracted staff. The audit also noted that school Medicaid service providers are not subject to routine backgrounds. Of the 231 providers audited, only 72, or 31%, had proof of completed background checks at the time of the inspector general’s request for records.
