By Mike Shields
KHI News Service
TOPEKA, March 15
A bill creating a new inspector general office to ferret out fraud and inefficiency in the state Medicaid, MediKan and SCHIP programs was unanimously endorsed Thursday by members of the Senate Ways and Means Committee.
A similar bill was overwhelmingly approved last year by the Senate but faltered in the House. Since then there have been meetings led by Sen. Derek Schmidt, R-Independence, that included representatives of the Kansas Medical Society, Kansas Hospital Association and the Kansas Health Policy Authority, each of which had concerns with last year”s version of Senate Bill 373.
“The work product developed through this joint effort has resulted in a reasonable and effective solution,” Chad Austin, lobbyist for the Kansas Hospital Association told lawmakers.
Others involved with the meetings also said they were content with the new version, which would put the inspector general”s office within the health policy authority instead of the Attorney General”s Office as first proposed. The inspector general would be hired by the health policy authority board but work under the health policy authority”s executive director. Any detected fraud or other illegal action would be referred directly to the Attorney General”s Office for possible prosecution. The health policy authority board also would be informed when that happened.
Estimated cost for the inspector general and three additional workers was $350,000, but committee members were told there likely would be some federal aid available to cover some or all that expense.
Schmidt told the committee that know one knows for sure but by “conservative” estimate $40 million in “fraud and error” could be found in the programs with the aid of an inspector general.
Marcia Nielsen, executive director of the health policy authority, said she also supported the bill though she told the committee: “I don”t believe there is rampant fraud and abuse by providers in our state.”
-Mike Shields is a staff writer for KHI News Service, which specializes in coverage of health issues facing Kansans. He can be reached at
mshields@khi.org
or at 785-233-5443, ext. 123.