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Kansas Gov. Laura Kelly has reached agreement with Senate Republicans on a bipartisan  to expand Medicaid eligibility to low-income uninsured adults by 2021. The proposal would expand eligibility to residents earning up to 138% of the federal poverty level, with the federal government financing 90% of the cost for the newly eligible and a “hospital surcharge” to help offset the state’s share of expansion costs. Kansas Hospital Association President and CEO Tom Bell called the proposal “the most significant progress we have seen in the Medicaid expansion debate in Kansas.” In other state news, Maine Gov. Janet Mills this week  agreement with lawmakers on bipartisan legislation that would merge the state’s small group and individual health insurance markets and extend reinsurance to small businesses in an effort to stabilize the markets and lower premiums.