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Kansas Large Beneficiary of the American Recovery and Reinvestment Act

The American Recovery and Reinvestment Act was passed by Congress and signed by President Obama on February 16, 2009. Despite no support from our congressional congregation, Kansas was a large beneficiary of the Act. Medicaid is a program that is divided proportionately between the federal government and the state government. In Kansas, the federal government pays a little over 50% of every Medicaid dollar and Kansas pays the remaining portion.

It is generally understood that in Kansas, Medicaid is the largest budget item. Many do not understand the breadth of the Medicaid program. Not only does it cover older, incapacitated adults, the largest portion of it goes to various children and health plans.

The new law is going to inject into the Kansas Medicaid program $450 Million over the next nine quarters (according to the Governmental Accountability Office). The result is that the federal government will be paying almost 60% of all Medicaid costs in Kansas. In addition, if the economy in Kansas were to worsen, there would be more available federal dollars.


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