TOPEKA – Leavitt Partners (Leavitt) gave testimony on Nov. 29, to the Bob Bethell KanCare Oversight Committee on their report on cost and utilization of Kansas’s state run Medicaid program, KanCare. Leavitt concluded that expenditures under KanCare have been lower than the state previously estimated would have been the case without the program. They also found that primary care visits by KanCare members increased, suggesting long-term savings through better preventative care and disease management, and expenditure growth decreased for high-cost care settings such as hospital inpatient departments.

Leavitt found that under KanCare, the Kansas Medicaid program spent approximately $1.7 billion less than the projected trend in total Medicaid spending from 2013 – 2016, nearly double the initial estimates for savings.

“This study confirms what our initial reports suggested: KanCare has been an effective method of controlling healthcare costs by improving the health of members in the program through preventative care and lowering hospital expenses,” said Lieutenant Governor Jeff Colyer, an architect of the KanCare program. “This review by Leavitt Partners of the numerous reports on KanCare gives us a good view of the savings that KanCare has provided to Kansans, while improving the overall health of our members.”

“Through a focus on coordinating care for individuals across the full spectrum of health care (behavioral health, physical health and long term care) and an emphasis on prevention, wellness, earlier detection and earlier intervention, KanCare has improved health outcomes for individuals on Medicaid and, as a result, lowered costs,” Kansas Department of Health and Environment Secretary Susan Mosier, MD, MBA, FACS said.

“The testimony presented today by Leavitt Partners focuses attention on the state’s committed pursuit of quality health care for individuals in the KanCare program while also being a responsible steward of program funds,” said Kansas Aging and Disability Services Secretary Tim Keck. “We have succeeded by nearly doubling the projected savings in the program’s four years of operation while ensuring better health outcomes for Kansans.”

Other highlights from Leavitt’s report include:

· Per capita expenditures fell from $625 per month in 2013 to $563 per month in 2016.

· Hospital inpatient services decreased by -18% from 2012 to 2013, and by -28% by 2015.

· During the first year of KanCare, utilization generally shifted toward home and community-based settings and away from hospital-based inpatient services, contributing to cost reductions.

Leavitt Partners conducted a review of numerous reports on the KanCare program since its inception in 2013. It highlights KanCare’s observed performance relative to its stated goals and commitments over the four completed operating years (2013 - 2016).