Page 1 of 1 LRC 2023-BR405-HB75
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2023 REGULAR SESSION
MEASURE
2023 BR NUMBER 405 HOUSE BILL NUMBER 75
TITLE AN ACT relating to hospital rate improvement programs and declaring an emergency.
SPONSOR Representative Brandon Reed
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: Department for Medicaid Services
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED Medical Assistance
Revolving Trust Fund
FISCAL ESTIMATES 2022-2023 2023-2024 ANNUAL IMPACT AT
FULL
IMPLEMENTATION
REVENUES
EXPENDITURES $63,663,100 RF
$254,652,400 FF
$322,499,200 RF
$1,143,406,300 FF
Indeterminable
NET EFFECT ($63,663,100) RF
($254,652,400) FF
($322,499,200) RF
($1,143,406,300) FF
Indeterminable
( ) indicates a decrease/negative
PURPOSE OF MEASURE: The purpose of the measure is to provide for Medicaid
reimbursement of outpatient hospital services under the Hospital Rate Improvement Program
(HRIP).
FISCAL EXPLANATION : Currently, the HRIP only applies to Medicaid reimbursements for
inpatient hospital services. The Department for Medicaid Services estimates that inclusion of
reimbursement for outpatient hospital services in the HRIP would result in increased Medicaid
expenditures of $318.3 million in Fiscal Year (FY) 2023 with an increase of $63.7 million in
Restricted Funds and $254.6 million in Federal Funds. In FY 2024, the legislation is estimated to
result in increased Medicaid expenditures of $1.4 billion with an increase of $322.5 million in
Restricted Funds and $1.1 billion in Federal Funds. Hospitals would continue to pay the state
match share – as represented in the Restricted Funds – through the hospital provider tax.
DATA SOURCE(S): Cabinet for Health and Family Services
PREPARER: Miriam Fordham NOTE NUMBER: 23 REVIEW: JAB DATE: 2/13/2023