April 11, 2025

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The Latest News

A Message from the President & CEO Linda MowBray: Our Kansas Commitment

WE DID IT!!!

Governor Kelly Signs Bipartisan Budget Bill

Nursing Home rebase, inflation and $20 per day add-on approved for FY26

Governor Laura Kelly has signed the state’s budget, Senate Bill 125, which allocates funding for Fiscal Years 2025, 2026, 2027, and 2028.

Although she did veto some of the measures in the bill, nursing home funding was not touched.

What that means for us is that on July 1, 2025 (the start of FY26), providers will see that their rates have been rebased using cost years 22-24 with an inflation factor calculated to the midpoint of FY26 (Dec. 31, 2025) and a $20 per day per Medicaid resident add-on.

Governor Kelly did express concerns about the financial impact of the bill; however, our rates are safe for another year.

“While I appreciate the bipartisan effort that went into crafting this bill, I remain concerned about the long-term fiscal impact this budget will have on our ability to invest in programs and services that Kansas families rely on, given that this budget will put the state in the red by Fiscal Year 2028,” Governor Laura Kelly said. “I am also concerned that the Legislature will adjourn before the release of Consensus Revenue Estimates, meaning we won’t fully understand the fiscal impact of this budget until after the Legislature has left town.”

Next steps for Medicaid rates: KHCA will be working with LeadingAge Kansas and KACE to discuss what changes we want to work with KDADS to remake the NF rate methodology including incentives ahead of next session and see how we can get as close to 100% cost reimbursement as possible without continuously going back to ask the Legislature for additional appropriations each year.

There will be a special Legislative committee meeting this summer where we will be able to discuss our ideas with key legislators and draft a funding bill prior to next year’s session. Additionally, we will be discussing the IDR process and transparency concerns.

Thank you for trusting us to be your voice in the legislature. As always, I am grateful for the opportunity to serve you.

Linda MowBray, President/CEO

lmowbray@khca.org

(785) 267-6003

CMS proposes 2.8 percent skilled nursing pay raise for 2026

Skilled nursing providers would see a 2.8% raise next fiscal year, or $196.5 million according to a proposed pay rule issued by the Centers for Medicare & Medicaid Services Friday. READ MORE

Also reported by Skilled Nursing News

CMS Finalizes Medicare Advantage Policy & Payment Rules

On Friday, April 4, the Centers for Medicare and Medicaid Services (CMS) issued the Contract Year 2026 Medicare Advantage and Medicare Part D Policy and Technical Changes final rule , which establishes key MA policies in the upcoming year and on Monday, April 7 per the statutory deadline, the Calendar Year 2026 MA Rate Announcement, which sets payment rates for contract year 2026. AHCA/NCAL is still reviewing the rules in detail but has developed a brief summary of each as it pertains to long term and post-acute care. (Please note that a member log-in is required to view the summary.)

MA Policy and Technical Changes

The final rule is primarily finalizing the required provisions related to the implementation of the Inflation Reduction Act. CMS did finalize some key provisions, including:

Closing MA Appeals Loopholes
Limiting the Reopening of MA Hospital Admission Decisions
Non-Allowable Special Supplemental Benefits for the Chronically Ill
Improvements to Care for Duals

The rule does not include certain provisions such as health equity analysis of utilization management policies, further clarifications on MA plans use of internal coverage criteria, requirements of Medicare and Medicaid coverage of anti-obesity medications, and ensuring fair access to MA services, by establishing guardrails on artificial intelligence.

MA Payment Rule

Medicare Advantage base rates are increasing by 5.06%. CMS is also completing the phase-in of the new risk adjustment model. More information about both of these is available in the AHCA/NCAL MA summary.

Please contact AHCA/NCAL’s Nisha Hammel with any questions regarding the MA rules.

New CMS Administrator Delivers First Public Message

McKnight’s Long-Term Care News (4/11, Marselas) reports, "Mehmet Oz, MD, took to social media Thursday to deliver his first public message as administrator of the Centers for Medicare & Medicaid Services administrator, promising that the agency would promote ‘personalized solutions’ through efforts fueled by ‘curiosity, courage, competence and compassion.’" As part of "a related press release Thursday, CMS said the agency would work under its new leader to modernize Medicare, the Affordable Care Act Marketplaces and Medicaid." In a statement, AHCA/NCAL President and CEO Clif Porter said, "We appreciate President Trump and many lawmakers’ commitments to prevent cuts to Medicaid benefits as well as their noble intent to focus on fraud, waste, and abuse. But make no mistake – Medicaid financing tools, like provider assessments, are legitimate, long-standing programs that support the care that nursing home residents receive. Reductions in provider assessments are a reduction to seniors’ access to care in nursing homes, pure and simple."

HHS May Soon Begin Slashing Regulations It Considers To Be Unlawful Or To Exceed Agency’s Authority, Memo Says

FierceHealthcare (4/10, Beavins, Muoio, Tong, 150K) reports, "Starting in 10 days," HHS "may begin slashing regulations it considers to be unlawful or to exceed the agency’s authority, according to a memorandum sent by the president on Wednesday." FierceHealthcare adds, "Experts speculated the memorandum could rapidly diminish the number of federal health care regulations on the books."

Receive $1,000 to attain Age-Friendly Health Systems Recognition - Kansas 4M (Apply by April 30, 2025)

Kansas 4M Geriatrics Workforce Education Program is offering $1,000 for up to 30 sites to participate in an Age-Friendly Action Community and achieve Level 1 and Level 2 Age-Friendly Health Systems Recognition.

CLICK HERE FOR ADDITIONAL INFORMATION

AHCA Wins Court Case Against the Staffing Mandate

I am delighted to share that the judge in the Northern District of Texas has ruled in our favor and against the federal staffing mandate. The judge’s order vacates the 24/7 RN and minimum hours per resident day requirements that were in the rule. This is a victory for our nation’s seniors, our members, and the entire sector.

We are still combing through Judge Kacsmaryk’s opinion, but he recognizes that “CMS lacks authority to issue a regulation that replaces Congress’s preferred minimum hours with its own.” This was exactly our argument.

I want to thank our co-plaintiffs: LeadingAge, our Texas affiliate, and the Texas nursing homes who fought along our side in this suit. I also want to thank you, our members, for the resources to hire the best legal team in the nation for this case, Clement & Murphy, PLLC.

The Administration now has 60 days to decide whether to appeal the rule. It is possible that they will decline to appeal, and this court’s ruling will stand. Given the new administration, we are hopeful that will be the case.

Meanwhile, we will continue to advocate that Congress truly put this issue to rest. Repealing the staffing mandate would save the government $22 billion over 10 years—a saver we anticipate seeing in the budget reconciliation package that Congress is working on this spring.

There is more work to do. But for now—let’s celebrate today’s win.

Cheers,

Clifton J. Porter, II

President & CEO, AHCA/NCAL

As reported on by:

McKnight's LTC News

Skilled Nursing News

CNN

AHCA Applauds Court Vacating the Federal Staffing Mandate

AHCA recently released a statement regarding the U.S. District Court for the Northern District of Texas ruling in AHCA and the other plaintiffs' favor to vacate the Biden Administration's federal staffing mandate for nursing homes. READ MORE

Your invitation to hear Howard Kurtz at Congressional Briefing

June 9-10, 2025 | Capital Hilton | Washington, DC

Join us for an insightful keynote by Howard Kurtz at Congressional Briefing. With decades of experience as a distinguished journalist, Kurtz offers invaluable perspectives on today’s media landscape.

As the host of Media Buzz on FOX News, Kurtz covers a broad range of topics, including politics, technology, business, and culture. He is also a regular guest on The O'Reilly Factor and Special Report, and previously hosted CNN’s Reliable Sources for 15 years. In addition, he has held prominent roles as the Washington bureau chief for Newsweek and The Daily Beast, and as a reporter for The Washington Post.

Beyond hearing from thought leaders like Howard Kurtz, Congressional Briefing provides a unique opportunity for you to engage directly with policymakers, share your stories, and advocate for the issues that affect long term care. Register today!

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Education Spotlight

Advance Concepts for Operators - Assisted Living Lunch and Learn

April 17, 2025 - 9:15AM - 3:30PM

This lunch and learn was created specifically with the Operators of our Kansas State Licensed Only facilities in mind. This 1-day lunch and learn will dive into topics that we frequently receive questions on for our Assisted Living, Home Plus and Residential Health Care Providers. Class size is limited to 40 and will include sharing and perspectives from all setting types.

Click here to learn more.

Upcoming Education