WASHINGTON - U.S. Senator Jerry Moran (R-Kan.) today announced the Centers for Medicare and Medicaid Services (CMS) approved Kansas' application to allow Critical Access Hospitals (CAHs) and Rural Emergency Hospitals (REHs) to receive enhanced payments through the state's provider assessment program. During negotiations on the One Big Beautiful Bill Act, Sen. Moran included language in the legislation to make certain Kansas rural hospitals could receive increased Medicaid reimbursements.

"Rural hospitals across Kansas will now be able to access additional federal dollars through the Medicaid program, helping strengthen our rural providers," said Sen. Moran. "During the consideration of last year's Reconciliation Bill, I secured language to make certain Kansas rural hospitals could participate in the state provider assessment program and that the state's application would remain eligible for consideration and approval. This decision by CMS opens the program to more rural hospitals to participate, providing Kansas CAHs and REHs with more than $72 million a year, which will help bolster rural hospital stability in Kansas."

"CMS' approval of Kansas' 2026 state directed payment preprint is a meaningful step towards providing critical stability for Kansas hospitals serving Medicaid patients across the state," said Chad Austin, President and CEO of the Kansas Hospital Association. "The inclusion of Critical Access Hospitals and Rural Emergency Hospitals to receive enhanced support is especially significant and will help strengthen access to essential care in rural Kansas and beyond. With base Medicaid payments falling well below the cost of providing care, this program is vital to helping hospitals both maintain their operations and sustain services such as obstetrics and behavioral health care. Kansas hospitals are grateful for the leadership of Senator Moran who championed this important outcome."

With this new approval from CMS, Kansas CAHs and REHs will be able to benefit fully from this increased assessment rate and generate more than $72 million a year for rural hospitals. In addition, this application approval continues the increased PPS hospital provider assessment rate, which is expected to generate approximately $1 billion annually for Kansas providers. Through Sen. Moran's work on the One Big Beautiful Bill Act, Kansas providers will receive increased Medicaid reimbursements for the next decade.

A recent RAND study showed that Kansas will take in more revenue because of the One Big Beautiful Bill Act.

With today's announcement, under the Reconciliation Bill, Kansas hospitals will benefit from the following:

• Last summer, Sen. Moran secured language in the One Big Beautiful Bill Act that made certain Kansas' pending application to allow Critical Access Hospitals and Rural Emergency Hospitals to participate in the state provider assessment program would remain be eligible for consideration and approval by CMS after passage of the legislation.
  
  
• In September 2025, Sen. Moran applauded CMS's approval of Kansas' 2025 provider assessment preprint, increasing the existing PPS hospital provider assessment to 6% from 3%. This change is expected to generate approximately $1 billion annually for Kansas hospitals.
  
  
• In December 2025, the CMS announced that Kansas will receive $222 million this year through the Rural Health Transformation (RHT) Program. The RHT Program was created in the One Big Beautiful Bill Act to direct CMS to work with states to identify the root challenges facing rural health providers and invest in solutions to improve outcomes for struggling providers. Kansas providers are estimated to receive approximately $1.1 billion over the next five years.

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