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AN ACT relating to the Medicaid program and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 205.5372 is amended to read as follows: 3
(1) Notwithstanding any provision of law to the contrary, including but not limited to 4
Sections 2 and 3 of this Act, the cabinet shall not, unless required by federal law, 5
exercise the state's option to develop a basic health program as permitted under 42 6
U.S.C. sec. 18051 or make any change to eligibility, coverage, benefits, or 7
reimbursements rates in the Medicaid program including by pursuing or applying 8
for a waiver of federal Medicaid law under Title 42 of the United States Code, 9
seeking to amend to renew an existing waiver granted under Title 42 of the 10
United States Code, or pursuing a state plan amendment without first obtaining 11
specific authorization from the General Assembly to do so. 12
(2) If the cabinet seeks authorization from the General Assembly to establish a basic 13
health program, apply for a waiver under Title 42 of the United States Code, 14
amend an existing waiver granted under Title 42 of the United States Code, 15
submit a state plan amendment, or make any other change to eligibility, coverage, 16
benefits, or reimbursement rates in the Medicaid program, the cabinet shall 17
submit a detailed assessment of the potential fiscal impact of the change for 18
which it is seeking authorization to the Legislative Research Commission for 19
referral to the Interim Joint Committee on Appropriations and Revenue, the 20
Interim Joint Committee on Families and Children, the Interim Joint Committee 21
on Health Services, and the Office of Budget Review. The fiscal impact 22
assessment required by this subsection shall include a review of any anticipated 23
expenditures related to the change and any projected savings that may be 24
generated by the change for at least two (2) consecutive state fiscal years. 25
(3) If the cabinet seeks authorization from the General Assembly to renew an 26
existing waiver granted under Title 42 of the United States Code, the cabinet shall 27 UNOFFICIAL COPY 25 RS BR 280
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be required to submit a fiscal impact assessment as described in subsection (2) of 1
this section and an assessment of the efficacy and necessity of the existing waiver. 2
The assessments required by this subsection shall be submitted to the Legislative 3
Research Commission for referral to the Interim Joint Committee on 4
Appropriations and Revenue, the Interim Joint Committee on Families and 5
Children, the Interim Joint Committee on Health Services, and the Office of 6
Budget Review at least twelve (12) calendar months prior to the date on which the 7
existing waiver is set to expire. 8
(4) (a) Nothing in this section shall be interpreted as limiting the General 9
Assembly's ability to direct the cabinet to make changes to the Medicaid 10
program including but not limited to changes to existing waivers, eligibility, 11
coverage, benefits, or reimbursement rates. 12
(b) Any act of the General Assembly directing the Cabinet for Health and 13
Family Services or the Department for Medicaid Services to make a change 14
to the Medicaid program shall constitute authorization for that change as 15
required by subsection (1) of this section. 16
(5) (a) Nothing in this section shall be interpreted as limiting the cabinet's ability 17
to make changes to the Medicaid program that it determines are necessary: 18
1. To comply with any requirements that may be imposed by federal law; 19
2. In response to a national emergency declaration issued by the 20
President of the United States; 21
3. In response to a federal disaster declaration issued by the President of 22
the United States; or 23
4. In response to a state of emergency declared by the Governor of the 24
Commonwealth. 25
(b) If the cabinet determines that a change to the Medicaid program is 26
necessary to comply with requirements imposed by federal law, the cabinet 27 UNOFFICIAL COPY 25 RS BR 280
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shall, at least ninety (90) days prior implementing the necessary changes, 1
submit an assessment of the potential fiscal impact, as described in 2
subsection (2) of this section, of those changes to the Legislative Research 3
Commission for referral to the Interim Joint Committee on Appropriations 4
and Revenue, the Interim Joint Committee on Families and Children, the 5
Interim Joint Committee on Health Services, and the Office of Budget 6
Review. 7
(c) If the cabinet determines that a change to the Medicaid program is 8
necessary to respond to a national emergency declaration or federal disaster 9
declaration issued by the President of the United States or a state of 10
emergency declared by the Governor of the Commonwealth, any such 11
change shall be temporary in nature and shall only be in effect for the 12
duration of the emergency or disaster declaration. 13
(6) As used in this section, the term "Medicaid program" includes the Kentucky 14
Medical Assistance Program established in KRS 205.510 to 205.5630 and the 15
Kentucky Children's Health Insurance Program established in KRS 205.6483. 16
Section 2. KRS 205.460 is amended to read as follows: 17
(1) The cabinet shall fund, directly or through a contracting entity or entities, in each 18
district, a program of essential services which shall have as its primary purpose the 19
prevention of unnecessary institutionalization of functionally impaired elderly 20
persons. The cabinet may use funds appropriated under this section to contract with 21
public and private agencies, long-term care facilities, local governments, and other 22
providers to provide core and essential services. The cabinet may provide core and 23
essential services when such services cannot otherwise be purchased. 24
(2) In providing essential services, all existing community resources available to 25
functionally impaired elderly persons shall be utilized. Additional services may be 26
provided, but shall not be funded from funds appropriated under this section. 27 UNOFFICIAL COPY 25 RS BR 280
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Volunteers may be used where practicable to provide essential services to 1
functionally impaired elderly persons. The cabinet or contracting entity shall 2
provide or arrange for the provision of training and supervision of volunteers to 3
ensure the delivery of quality services. The cabinet or contracting entity shall 4
provide or arrange for appropriate insurance coverage to protect volunteers from 5
personal liability while acting within the scope of their volunteer duties. In 6
providing essential services under this section, the cabinet shall provide services to 7
meet the needs of the minority elderly as identified by the cabinet pursuant to KRS 8
205.201. 9
(3) Entities contracting with the cabinet to provide essential services under KRS 10
205.455 and this section shall provide a minimum of fifteen percent (15%) of the 11
funding necessary for the support of program operations. No local match is required 12
for assessment and case management. Local contributions, whether materials, 13
commodities, transportation, office space, personal services, or other types of 14
facilities services, or funds may be evaluated and counted toward the fifteen percent 15
(15%) local funding requirements. 16
(4) When possible, funding for core services may be obtained under: 17
(a) The Comprehensive Annual Social Services Program plan under Title XX of 18
the Social Security Act; 19
(b) The Medical Assistance Plan under Titles XVIII and XIX of the Social 20
Security Act; 21
(c) The State Plan on Aging under the Older Americans Act; or 22
(d) Veteran's benefit programs under the provisions of 38 U.S.C. secs. 1 et seq., 23
as amended. 24
The cabinet may, except as provided in Section 1 of this Act, seek federal waivers 25
if necessary to enable the use of funds provided through Titles XVIII and XIX of 26
the Social Security Act for the provision of essential services. 27 UNOFFICIAL COPY 25 RS BR 280
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(5) Providers contracting with the cabinet to provide essential services shall be 1
responsible for the collection of fees and contributions for services in accordance 2
with administrative regulations promulgated by the cabinet. Providers are 3
authorized to assess and collect fees for services rendered in accordance with those 4
administrative regulations. To help pay for essential services received, a 5
functionally impaired elderly person shall pay an amount of money based on an 6
overall ability to pay in accordance with a schedule of fees established by the 7
cabinet. Fees shall reflect the degree to which the cabinet or contracting entity uses 8
volunteers in the provision of services. Where essential services are provided by 9
volunteers, fees shall only be assessed in an amount that will cover the cost of 10
materials and other goods used in the provision of services. The cost of materials 11
and other goods used by volunteers shall be reasonably similar to the cost of goods 12
when paid personnel are used. Fees shall not be required of any person who is 13
"needy aged" as defined in KRS 205.010; however, voluntary contributions may be 14
encouraged. This subsection shall not apply to programs utilizing federal funds 15
when administrative regulations require contributions to revert to the original 16
funding source. 17
Section 3. KRS 205.520 is amended to read as follows: 18
(1) KRS 205.510 to 205.630 shall be known as the "Medical Assistance Act." 19
(2) The General Assembly of the Commonwealth of Kentucky recognizes and declares 20
that it is an essential function, duty, and responsibility of the state government to 21
provide medical care to its indigent citizenry; and it is the purpose of KRS 205.510 22
to 205.630 to provide such care. 23
(3) Further, it is the policy of the Commonwealth to take advantage of all federal funds 24
that may be available for medical assistance. To qualify for federal funds the 25
secretary for health and family services may, except as provided in Section 1 of 26
this Act, by regulation comply with any requirement that may be imposed or 27 UNOFFICIAL COPY 25 RS BR 280
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opportunity that may be presented by federal law. Nothing in KRS 205.510 to 1
205.630 is intended to limit the secretary's power in this respect. 2
(4) It is the intention of the General Assembly to comply with the provisions of Title 3
XIX of the Social Security Act which require that the Kentucky Medical Assistance 4
Program recover from third parties which have a legal liability to pay for care and 5
services paid by the Kentucky Medical Assistance Program. 6
(5) The Kentucky Medical Assistance Program shall be the payor of last resort and its 7
right to recover under KRS 205.622 to 205.630 shall be superior to any right of 8
reimbursement, subrogation, or indemnity of any liable third party. 9
Section 4. KRS 205.5371 is amended to read as follows: 10
(1) The cabinet, to the extent permitted under federal law, shall no later than April 15, 11
2023, implement a community engagement program for able-bodied adults without 12
dependents who have been enrolled in the state's medical assistance program for 13
more than twelve (12) months. 14
(2) If the federal Centers for Medicare and Medicaid Services approves the 15
implementation of a community engagement program pursuant to subsection (1) of 16
this section: 17
(a) The program may, for the purpose of defining qualifying community 18
engagement activities, utilize the same requirements established in 7 C.F.R. 19
sec. 273.24; 20
(b) Participation in the job placement assistance program established in KRS 21
151B.420 shall constitute qualifying community engagement activities; and 22
(c) The cabinet shall, on a monthly basis, provide the Education and Labor 23
Cabinet with the name and contact information of each individual 24
participating in the community engagement program. 25
(3) Th cabinet is hereby authorized, as required under Section 1 of this Act, to submit 26
a waiver application to the Centers for Medicare and Medicaid Services 27 UNOFFICIAL COPY 25 RS BR 280
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requesting approval to establish the community engagement program for able-1
bodied adults without dependents as described in subsections (1) and (2) of this 2
section. 3
(4) As used in this section, "able-bodied adult without dependents" means an individual 4
who is: 5
(a) Over eighteen (18) years of age but under sixty (60) years of age; 6
(b) Physically and mentally able to work as determined by the cabinet; and 7
(c) Not primarily responsible for the care of a dependent child under the age of 8
eighteen (18) or a dependent disabled adult relative. 9
SECTION 5. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 10
READ AS FOLLOWS: 11
(1) There is hereby established within the Finance and Administration Cabinet a 12
restricted fund to be known as the Kentucky Medicaid rebate sequestration fund. 13
All moneys contained in the fund shall be considered unappropriated and shall 14
not be available to the secretary of the Cabinet for Health and Family Services 15
for expenditure. 16
(2) All moneys received by the Cabinet for Health and Family Services or the 17
Department for Medicaid Services as compensation or rebate, including 18
supplemental rebates, from a pharmaceutical drug manufacturer, the state 19
pharmacy benefit manager contracted by the department pursuant to KRS 20
205.5512, or any other third-party entity contracted to administer or assist in 21
administering any aspect of the Medicaid program minus any remittance that 22
may be owed to the federal government shall be deposited into the fund. 23
(3) Moneys deposited into the fund pursuant to this section shall not be expended or 24
appropriated without the express authority of the General Assembly. 25
(4) Pursuant to KRS 45.229, any fund balance at the close of the fiscal year shall 26
lapse to the surplus account of the general fund. 27 UNOFFICIAL COPY 25 RS BR 280
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Section 6. KRS 205.240 is amended to read as follows: 1
(1) All money appropriated by this state, all money received from the United States or 2
any agency thereof, and all money received from any other source for the public 3
assistance functions administered by the cabinet are, except as provided in 4
subsection (2) of this section, hereby appropriated and shall be available to the 5
secretary for expenditure consistent with the provisions of this chapter and KRS 6
Chapter 195. 7
(2) All moneys received by the cabinet or the Department for Medicaid Services as 8
compensation or rebate from a pharmaceutical drug manufacturer or the state 9
pharmacy benefit manager contracted by the department pursuant to KRS 10
205.5512 minus any remittance that may be owed to the federal government shall 11
be considered unappropriated funds, shall not be available to the secretary for 12
expenditure, and shall be deposited in the Kentucky Medicaid rebate 13
sequestration fund established in Section 5 of this Act. 14
Section 7. KRS 205.525 is amended to read as follows: 15
(1) Concurrent with submitting an application for a waiver,[ or] waiver amendment, 16
waiver renewal, or a request for a state plan amendment to any federal agency that 17
approves waivers, waiver amendments, waiver renewals, or[ and] state plan 18
amendments, the cabinet shall provide to the Interim Joint Committee on Health 19
Services[,] and to the Interim Joint Committee on Appropriations and Revenue a 20
copy, summary, and statement of benefits of the application for a waiver,[ or] 21
waiver amendment, waiver renewal, or request for a state plan amendment. 22
(2) The cabinet shall provide an update on the status of the application for a waiver,[ 23
or] waiver amendment, waiver renewal, or request for a state plan amendment to 24
the Legislative Research Commission upon request. 25
(3) If the cabinet is expressly directed by the General Assembly to submit an 26
application for a waiver,[ or] waiver amendment, waiver renewal, or a request for a 27 UNOFFICIAL COPY 25 RS BR 280
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state plan amendment to any federal agency that approves waivers, waiver 1
amendments, waiver renewals, or state plan amendments for public assistance 2
programs administered under this chapter and that application or request is denied 3
by the federal agency, the cabinet shall notify the Legislative Research Commission 4
of the reasons for the denial. If instructed by the General Assembly through 5
legislative action during the next legislative session, the cabinet shall resubmit, with 6
or without modifications based on instructions from the General Assembly, the 7
application for a waiver,[ or] waiver amendment, waiver renewal, or request for a 8
state plan amendment. 9
Section 8. KRS 205.6328 is repealed, reenacted, and amended to read as 10
follows: 11
(1) (a) No Medicaid managed care contract shall be valid, and no payment to a 12
Medicaid managed care vendor by the Finance and Administration Cabinet 13
or the Cabinet for Health and Family Services shall be made, unless the 14
Medicaid managed care contract contains a provision that the contractor 15
shall collect Medicaid expenditure data by the categories of services paid for 16
by the Medicaid Program. Actual statewide Medicaid expenditure data by 17
all categories of Medicaid services, including mandated and optional 18
Medicaid services, special expenditures/offsets, recoupments and clawbacks, 19
and Disproportionate Share Hospital payments by type of hospital, shall be 20
compiled by the Department for Medicaid Services for all Medicaid 21
providers and forwarded to the Legislative Research Commission for 22
referral to the Interim Joint Committee on Appropriations and Revenue, the 23
Interim Joint Committee on Families and Children, the Interim Joint 24
Committee on Health Services, and the Office of Budget Review on a 25
quarterly basis. Projections of Medicaid expenditures by categories of 26
Medicaid services shall be provided to the Interim Joint Committee on 27 UNOFFICIAL COPY 25 RS BR 280
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Appropriations and Revenue, the Interim Joint Committee on Families and 1
Children, the Interim Joint Committee on Health Services, and the Office of 2
Budget Review upon request. 3
(b) Medicaid expenditure data required to be collected and reported pursuant to 4
paragraph (a) of this subsection shall include expenditures made by any 5
third-party administrator contracted by a managed care organization to 6
assist in providing services and benefits to Medicaid beneficiaries including 7
but not limited to any dental benefit administrator, vision benefit 8
administrator, hearing benefit administrator, or transportation benefit 9
administrator. 10
(2) The Department for Medicaid Services shall submit a quarterly budget analysis 11
report to the Legislative Research Commission for referral to the Interim Joint 12
Committee on Appropriations and Revenue, the Interim Joint Committee on 13
Families and Children, the Interim Joint Committee on Health Services, and the 14
Office of Budget Review no later than seventy-five (75) days after the end of each 15
quarter. The report shall provide monthly detail of actual expenditures, eligibles, 16
and average monthly cost per eligible by eligibility category along with current 17
trailing twelve (12) month averages for each of these figures. The report shall 18
also provide actual figures for all categories of noneligible-specific expenditures 19
such as Supplemental Medical Insurance premiums, Kentucky Patient Access to 20
Care, nonemergency transportation, drug rebates, cost settlements, and 21
Disproportionate Share Hospital payments by type of hospital. The report shall 22
compare the actual expenditure experience with those underlying the enacted or 23
revised enacted budget and explain any significant variances which may occur. 24
(3) (a) Except as provided by KRS 61.878, all records and correspondence relating 25
to Kentucky Medicaid, revenues derived from Kentucky Medicaid funds, 26
and expenditures utilizing Kentucky Medicaid funds of a Medicaid 27 UNOFFICIAL COPY 25 RS BR 280
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managed care company operating within the Commonwealth shall be 1
subject to the Kentucky Open Records Act, KRS 61.870 to 61.884. This 2
subsection shall not apply to any records and correspondence relating to 3
Medicaid specifically prohibited from disclosure by the federal Health 4
Insurance Portability and Accountability Act privacy rules. 5
(b) No later than sixty (60) days after the end of each quarter, each Medicaid 6
managed care company operating within the Commonwealth shall prepare 7
and submit to the Department for Medicaid Services sufficient information 8
to allow the department to meet the following requirements ninety (90) days 9
after the end of each quarter. The department shall forward to the 10
Legislative Research Commission for referral to the Interim Joint 11
Committee on Appropriations and Revenue, the Interim Joint Committee on 12
Families and Children, the Interim Joint Committee on Health Services, 13
and the Office of Budget Review a quarterly report detailing monthly actual 14
expenditures by service category, monthly eligibles, and average monthly 15
cost per eligible for Medicaid and the Kentucky Children's Health 16
Insurance Program (KCHIP) along with current trailing twelve (12) month 17
averages for each of these figures. The report shall also provide actual 18
figures for other categories such as pharmacy rebates and reinsurance. 19
Finally, the department shall include in this report the most recent 20
information or report available regarding the amount withheld to meet 21
Department of Insurance reserve requirements, and any distribution of 22
moneys received or retained in excess of these reserve requirements. 23
(4) The Cabinet for Health and Family Services shall submit a quarterly enrollee 24
demographics report to the Legislative Research Commission for referral to the 25
Interim Joint Committee on Appropriations and Revenue, the Interim Joint 26
Committee on Families and Children, the Interim Joint Committee on Health 27 UNOFFICIAL COPY 25 RS BR 280
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Services, and the Office of Budget Review no later than seventy-five (75) days 1
after the end of each quarter. The enrollee demographics report shall provide a 2
summary of enrollee demographics and shall include data on at least the 3
following demographic characteristics for enrollees by county: 4
(a) The total number of individuals enrolled in the Medicaid program during 5
each month of the previous quarter by eligibility category; 6
(b) The number of individuals enrolled in the Medicaid program during the 7
previous quarter with fewer than four (4) months of continuous Medicaid 8
program coverage at the end of the previous quarter by eligibility category; 9
(c) 1. The number of individuals described in paragraphs (b) of this 10
subsection, by eligibility category, who had previously been disenrolled 11
or otherwise removed from the Medicaid program for any reason 12
during the previous seven (7) years; 13
2. The average number of times the individuals described in 14
subparagraph 1. of this paragraph had been disenrolled or otherwise 15
removed from the Medicaid program prior to the previous quarter; 16
and 17
3. The average length of time in months the individuals described in 18
subparagraph 1. of this paragraph were without Medicaid program 19
coverage prior to their most recent enrollment into the program; 20
(d) The total number of individuals who were disenrolled or otherwise removed 21
from the Medicaid program for any reason during each month of the 22
previous quarter by eligibility category; 23
(e) 1. The number of individuals described in paragraph (d) of this 24
subsection, by eligibility category, who at the time of disenrollment or 25
removal had fewer than twelve (12) months of continuous Medicaid 26
program coverage; and 27 UNOFFICIAL COPY 25 RS BR 280
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2. The average number of times, by eligibility category, the individuals 1
described in subparagraph 1. of this paragraph had been disenrolled 2
or removed from the Medicaid program during the previous seven (7) 3
years 4
(f) The number of individuals enrolled in the Medicaid program by 5
employment status, including full-time employment, part-time employment, 6
and unemployed; 7
(g) The number of individuals enrolled in the Medicaid program by race and 8
ethnicity; 9
(h) The number of individuals enrolled in the Medicaid program by citizenship 10
status, refugee status, legal immigration status, illegal or undocumented 11
immigration status, or other status under which an individual is present in 12
the United States; 13
(i) The number of beneficiaries enrolled in the Medicaid program with 14
dependents; 15
(j) The total number of dependents enrolled in the Medicaid program; and 16
(k) Any other information or data related to Medicaid beneficiaries requested 17
by that the Legislative Research Commission. 18
(5) The Department for Medicaid Services shall submit a quarterly health care 19
provider tax and assessment report to the Legislative Research Commission for 20
referral to the Interim Joint Committee on Appropriations and Revenue, the 21
Interim Joint Committee on Families and Children, the Interim Joint Committee 22
on Health Services, and the Office of Budget Review no later than seventy-five 23
(75) days after the end of each quarter. The health care provider tax report shall 24
include the total amount of revenue generated during the previous quarter by 25
each of the taxes and assessments described below and the corresponding federal 26
funding match generated by each tax or assessment during the previous quarter: 27 UNOFFICIAL COPY 25 RS BR 280
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(a) The hospital services tax established in KRS 142.303; 1
(b) The healthcare services tax established in KRS 142.307; 2
(c) The regional community services tax established in KRS 142.314; 3
(d) The psychiatric residential treatment facility tax established in KRS 4
142.315; 5
(e) The Medicaid managed care organization services tax established in KRS 6
142.316; 7
(f) The ground ambulance service provider assessment established in KRS 8
142.318; 9
(g) The intermediate-care facility services tax established in KRS 142.363; 10
(h) The inpatient hospital rate improvement program assessment established in 11
KRS 205.6406(3)(h); 12
(i) The outpatient hospital rate improvement program assessment established 13
in KRS 205.6406(3)(j); and 14
(j) The rate improvement program for qualified hospitals assessment 15
established in KRS 205.6412. 16
(6) All reports required to be submitted to the Legislative Research Commission 17
under this section shall be submitted in a form and manner prescribed by the 18
Legislative Research Commission. 19
(7) As used in this section, the term "Medicaid program" includes the Kentucky 20
Medical Assistance Program established in KRS 205.510 to 205.5630 and the 21
Kentucky Children's Health Insurance Program established in KRS 205.6483 22
[The Cabinet for Human Resources shall establish a system for the reporting to the 23
General Assembly, on a quarterly basis, through December 31, 1996, as to the 24
progress in implementing the provisions of KRS 205.6310 to 205.6332, the 25
findings of any reports or studies authorized by KRS 205.6310 to 205.6332, 26
and recommendations regarding the reports or studies. 27 UNOFFICIAL COPY 25 RS BR 280
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(2) As each item identified in subsection (1) of this section has been completed, that 1
item shall not be included on the next quarterly report, but shall be identified as 2
having been completed. 3
(3) This section expires on January 1, 1997]. 4
SECTION 9. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 5
READ AS FOLLOWS: 6
Notwithstanding 42 C.F.R. sec. 431.17(c), all records required to be retained by 42 7
C.F.R. sec. 431.17(b) shall be retained by the Department for Medicaid Services for a 8
period of not less than seven (7) years following the beneficiary's most recent 9
disenrollment from the Medicaid program. 10
SECTION 10. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 11
READ AS FOLLOWS: 12
(1) The Department for Medicaid Services and any managed care organization with 13
whom the department contracts for the delivery of Medicaid service shall provide 14
coverage and reimbursement for up to one hundred (100) units of 15
psychoeducational services billed under the CPT code H2027 per member on an 16
annual basis, except that the department and managed care organizations shall 17
not be required to cover or provide reimbursement for more than one (1) unit of 18
psychoeducational services per day. 19
(2) Coverage of psychoeducational services required under subsection (1) of this 20
section shall not be subject to utilization review management including but not 21
limited to prior authorization. 22
(3) Notwithstanding the limitations established in subsection (1) of this section, a 23
managed care organization may approve, cover, and provide reimbursement for 24
more than one hundred (100) units of psychoeducational services per year for a 25
Medicaid beneficiary if the managed care organization believes that the Medicaid 26
beneficiary will receive therapeutic benefit for additional services. 27 UNOFFICIAL COPY 25 RS BR 280
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SECTION 11. A NEW SECTION OF KRS CHAPTER 194A IS CREATED 1
TO READ AS FOLLOWS: 2
(1) If the Cabinet for Health and Family Services believes there to be any barrier to 3
implementing a Medicaid-related bill or resolution under consideration by 4
General Assembly, the cabinet shall notify the Legislative Research Commission 5
in writing of any anticipated implementation barriers within seven (7) calendar 6
days following a standing committee's report that the bill or resolution should 7
pass. 8
(2) When the Legislative Research Commission receives written notification from the 9
Cabinet for Health and Family Services as required by subsection (1) of this 10
section, the written notification shall be referred to the sponsor of the bill or 11
resolution, the committee that considered the bill or resolution, and the 12
corresponding standing committee in the other chamber of the General Assembly. 13
Section 12. The Cabinet for Health and Family Services, Department for 14
Medicaid Services is hereby directed to, within ninety (90) days after the effective date of 15
this Act, reinstate all prior authorization requirements for behavioral health services in 16
the Medicaid program that were in place and required for behavioral health services on 17
January 1, 2020. The Cabinet for Health and Family Services may promulgate 18
administrative regulations necessary to comply with this section. 19
Section 13. Notwithstanding any provision of law to the contrary, the Cabinet 20
for Health and Family Services, Department for Medicaid Services shall procure new 21
Medicaid managed care contracts in accordance with KRS Chapter 45A. Medicaid 22
managed care contracts procured under this section shall have an effective date of no later 23
than January 1, 2027. 24
Section 14. The managed care organizations with whom the Department for 25
Medicaid Services has contracted for the delivery of Medicaid services are hereby 26
directed to collaborate with one another on the development of a scorecard for behavioral 27 UNOFFICIAL COPY 25 RS BR 280
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health and substance use disorder treatment services and providers to be used by all 1
contacted managed care organizations. The scorecard collaboratively developed by the 2
managed care organizations in accordance with this section shall be publicly available on 3
each managed care organization's website no later than December 31, 2025. 4
Section 15. Whereas ongoing budget negotiations at the federal level, including 5
over federal financial support for the Medicaid program, combined with significant 6
expansion of the Commonwealth's Medicaid budget over the last decade creates an 7
urgent need to bolster legislative oversight of the program, an emergency is declared to 8
exist, and this Act takes effect upon its passage and approval by the Governor or upon its 9
otherwise becoming a law. 10