Kentucky House approves broad Medicaid reform bill after floor fights over co-pays, data and transport

Frankfort, Ky. — The Kentucky House of Representatives passed House Bill 2 on Feb. 27, a multi-part Medicaid reform package the bill sponsor described as necessary to rein in program inefficiencies and align state practice with recent federal changes referenced in the debate as HR 1.

Representative from Jefferson 48, the bill sponsor, said the measure aims to strengthen procurement standards for Medicaid managed care organizations (MCOs), tighten audit and appeals procedures, require greater transparency and create a public dashboard tracking program performance. “Our Medicaid program provides health care coverage to one-third of Kentuckians and is the second largest state expense,” he said, urging colleagues to act on program integrity and oversight. He told the House the bill would limit audits to claims no older than two years and prevent MCOs from recouping funds until appeal processes are complete.

The bill drew sustained floor debate over cost-sharing and access. Representative from Fayette 45 argued the measure’s state-specific co-payments could put new financial burdens on low-income Kentuckians and chronic-care patients, warning that “by trying to collect a few dollars at the front door, we are effectively choosing to pay thousands of dollars out the back door in emergency costs.” The…