Democratic Gov. Laura Kelly announced she and Republican Senate Majority Leader Jim Denning have come up with a compromise on Medicaid expansion.

The Governor and Majority Leader made the announcement during a news conference Thursday morning at the Statehouse.

“Compromise is hard, it’s messy and it’s slow. But it’s so worth it,” the Governor said.

“We have a really good, complete plan for Kansas,” Denning said.

Kelly and the Overland Park Republican have been working for weeks toward a compromise on extending Medicaid health coverage to as many as 150,000 additional people.

Compromises include:

- Full Medicaid Expansion: The proposal includes a full expansion of Medicaid to 138% of the Federal Poverty Level (FPL) with a 90/10 match, to be effective no later than January 1, 2021.

- Reinsurance: Pending Centers for Medicare and Medicaid Services (CMS) approval of a 1332 waiver and release of funding by the State Finance Council, the proposal includes a reinsurance program to be effective no later than January 1, 2022. The agreement also requires the Kansas Insurance Department to complete an actuarial study of the reinsurance proposal and submit to the State Finance Council.

- Medicaid Funding: The proposal includes an annual hospital Medicaid expansion support surcharge of up to $35 million, which has been endorsed by the Kansas Hospital Association, to be effective July 1, 2021. This compromise proposal does not require a tax increase.

- Promoting Personal Responsibility: The agreement includes a robust work referral program that promotes self-reliance for non-working Medicaid beneficiaries, while limiting costly administrative red tape that drives up overall costs to taxpayers. Enrollees within the expansion population will make a modest contribution for health services through monthly premiums of up to $25 per month, or $100 for a family of four, as proposed in House Bill 2066. The bill does not contain any lockouts. Instead, it collects unpaid premiums through the state’s debt setoff program. A hardship provision is also included.

- Rural Health Care Innovations: The proposal creates an advisory committee within the Kansas Department of Health and Environment to support rural hospitals in assessing viability and identifying new delivery models, strategic partnerships and implementing financial and delivery system reform to improve the health of rural communities.

Denning says expansion will cost $35-million.

Kelly has made expanding Medicaid a top priority of her administration. Efforts stalled last session with the Senate's refusal to consider her proposal, but Kelly said she is confident it will pass in the session that begins next week.

Denning says the bill will be introduced in the Senate. He adds that the bill already has 22 co-sponsors. It needs 21 votes in the Senate to pass.

The Legislature opens its annual session Monday.