MARCIA J.NIELSEN, PhD, MPH Executive Director ANDREW ALLISON, PhD Deputy Director

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Agency Website: www.khpa.ks.gov Address: Rm. 900-N, Landon Building, 900 SW Jackson Street, Topeka, KS 66612-1220

Medicaid and HealthWave:

State Employee Health

State Self Insurance Fund: Phone: 785-296-3981

Benefits and Plan Purchasing:

Phone: 785-296-2364 Fax: 785-296-4813

Phone: 785-296-6280

Fax: 785-296-6995

Fax: 785-368-7180

Policy Memo

KHPA POLICY NO: 2007-05-01

To: SRS Staff KHPA Staff KDOA Staff

From: Andrew Allison, Medicaid Director Date : May 2, 2007

KEESM Reference: RE: State Supplemental Payment Program

Program(s): Medical Assistance

This memo implements the State Supplemental Payment Program, a state-funded cash assistance program for persons living in a Medicaid-approved institution. Specific instructions for SRS and KHPA staff are included in this memo. The State Supplemental Payment Program was implemented on May 1, 2007 and is retroactively effective July 1, 2006.

I. Authority and Background The State Supplemental Payment Program was created by the 2006 Kansas Legislature with passage of Senate Bill 62 and subsequent enactment of K.S.A. 39-972. This legislation actually made several modifications to long term care assistance for Medicaid eligible individuals. The first of these benefits was implemented in July, 2006 with an increase in the protected income level for institutional living arrangements from $30.00 to $50.00 for single individuals ($60.00 to $100.00 for couples). For most Medicaid beneficiaries, this change resulted in a decrease in their patient liability and an extra $20.00 per month to spend for personal needs. A second increase in the protected income level was also included in the legislation. Effective July 1, 2007 the protected amount will increase from $50.00 to $60.00. Although thousands of facility residents are impacted by the increased protected level, there is a small group of very-low income beneficiaries who did see a change in their personal needs funds.