Appropriations Committee approves House Bill 695 Medicaid modifications

The Senate Standing Committee on Appropriations and Revenue convened on March 14, 2025, to discuss a single agenda item: House Bill 695. The meeting commenced with the confirmation of a quorum, allowing the committee to proceed with business.

Chair McDaniel introduced the committee substitute for House Bill 695 and called for a motion to adopt it. Senator Maden moved to accept the substitute, which was seconded by Senator Nunn. The motion passed unanimously, with all members voting in favor.

Senator Mays Bledsoe provided a detailed explanation of the committee substitute, highlighting several key changes. Notably, the substitute includes the establishment of a Medicaid Oversight Advisory Board and exempts certain changes to the Medicaid program from needing authorization by the General Assembly, particularly those mandated by federal regulations.

Further revisions clarified that the community engagement program would be mandatory and adjusted the location of the Kentucky Medicaid pharmaceutical rebate fund to the Cabinet for Health and Family Services. The substitute also modified reporting requirements related to Medicaid managed care contracts and established new monitoring protocols for behavioral health and substance use treatment services.

Significant deletions from the original bill included the removal of provisions for Medicaid coverage of psychoeducational services, replaced by a requirement for the Department for Medicaid Services to monitor and report on specific service utilization rates.

After the explanation, Chair McDaniel called for a motion to adopt the committee substitute. The motion was again moved by Senator Richardson and seconded by Senator Nunn. The roll call vote resulted in 11 votes in favor and none against, confirming the passage of the measure with favorable expression.

The meeting concluded with the successful adoption of House Bill 695, reflecting the committee's commitment to refining Medicaid oversight and ensuring compliance with federal requirements.