Kansas uses Medicaid system to plug budget holes

Kansas Gov. Sam Brownback is one of 19 Republican governors who has spurned extra federal dollars to expand Medicaid roles in the state through the Affordable Care Act, but  he has found a way to use the Medicaid system to plug budget holes.

Facing a budget shortfall of over $600 million this year – following large income tax cuts three years ago – Brownback has tripled the tax on managed-care groups to 3.1 percent and increased state spending tied to the Medicaid system to gain federal matching dollars.

With $1.27 coming to the state for every dollar Kansas spends, the strategy has netted $47 million for its general fund.

Read more from Bloomberg Businessweek.