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KanCare Contractors Make Profits as Committee Hears Complaints About Services

Mike Randol, with KDHE, during his presentation before the committee. (Photo by Stephen Koranda)

Two of the state’s three KanCare Medicaid contracts were making a profit by the end of last year. That’s from a report given to lawmakers Friday in Topeka.

Some previous records had shown losses at all three of the companies that manage the state’s privatized Medicaid program. By the end of 2015, the newest report shows UnitedHealthcare had made $44 million, Amerigroup had made $31 million and Sunflower Health Plan had lost $16 million.

The report came as part of a two-day hearing that included Medicaid health care providers and recipients sharing concerns about problems with the system.

Democratic state Representative Jim Ward questions if the profits have come at the cost of services and a Medicaid application waiting list.

“You’ve heard for two days the problems that are going on within the system, all dealing with not getting services, not becoming eligible, all of which affects the bottom line,” says Ward.

Mike Randol, with the Kansas Department of Health and Environment, says there’s no connection between growth in the Medicaid application waiting list and the company profits.

“They were making money prior to that,” says Randol. “There’s no sinister attempt by anyone at any agency that I’m aware of.”

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