TOPEKA, KS – The State of Kansas is returning its “Early Innovator” grant that was distributed by HHS to aid in the design and implementation of the IT infrastructure needed to launch its state health insurance exchange.

Kansas Gov. Sam Brownback and Lt. Governor Jeff Colyer made the announcement on Tuesday to opt out of the $31.5 million grant the state was awarded in February.

"There is much uncertainty surrounding the ability of the federal government to meet it's already budgeted future spending obligations. Every state should be preparing for fewer federal resources, not more," said Brownback. "To deal with that reality Kansas needs to maintain maximum flexibility. That requires freeing Kansas from the strings attached to the Early Innovator Grant," said Brownback.

Kansas is now the second state, after Oklahoma, to return the funding. Oklahoma made its decision in April. Maryland, New York, Oregon, Wisconsin and a consortium of New England states were also recipients of the grants.

“Federal Medicaid mandates have cost Kansans over 400 million in the past two years alone," said Colyer.. "Full implementation of the mandates in the president’s healthcare law would cost billions more. We will work to find innovative Kansas-based solutions to Kansas challenges and be very selective in the federal funds the state applies for and receives. We look forward to working with legislative leaders and Insurance Commissioner Praeger as we develop Kansas solutions."

 

"The early innovator grant does not address the most important issue in health reform, which is slowing the rate of cost growth in healthcare," said Robert Moser, secretary for the Kansas Department of Health and Environment. "Through the statewide Medicaid reform meetings, Kansas is taking the opportunity to decide for ourselves how best to provide healthcare access, improve outcomes and reduce costs for our state,”