Members of the legislature’s budget committee discussed increasing oversight of the state’s publicly-funded health insurance program during the panel’s December meeting. The discussion centered on a measure expected to be filed when the Kentucky General Assembly convenes the 2025 Regular Session in January.
The 2025 proposal is similar to legislation filed during the 2024 Regular Session (HB 316). Under the bill, the oversight and advisory board would be comprised of 12 legislators and 14 non-legislative members, including representatives from the Cabinet for Health and Family Services, the Department of Medicaid Services, healthcare providers, and the managed care organizations that provide coverage. Panel members would review, analyze, and evaluate program data, ultimately making recommendations for potential policy changes. Under the proposal, the oversight and advisory board would be required to publish annual reports based on program evaluations, actuarial analyses, and health assessments.
Medicaid provides comprehensive health care coverage and long-term health services to eligible Kentuckians. While funding comes from both the state and federal government, it is administered by state government with federal regulations.
Since 2017, Medicaid enrollment has increased by more than 10% and the program accounts for an increasingly large portion of our budget. However, Kentuckians remain among the sickest people in the nation, many dying too early and others living a life limited by chronic illness. Healthcare needs change and expanding oversight would help address gaps in coverage and improve access to care.
Here in Kentucky, most of the management of Medicaid is provided through private insurance companies under managed care. Oversight is crucial to ensure these organizations are meeting contractual obligations and providing adequate care, especially in underserved areas. Bowling and Petrie’s proposal would also lead to greater transparency in how the managed care model is working.
I appreciate the goal of holding the program more accountable. After all, it not only helps safeguard taxpayer resources, but also brings us closer to ensuring the Medicaid program fulfills its mission to provide critical healthcare services. It also ensures that program administrators and contractors are held accountable for their performance and outcomes.
The full text of the draft of the proposal can be found on the legislature’s website under the December 3, 2024 meeting materials for the Interim Joint Committee on Appropriations and Revenue at legislature.ky.gov.
Members also heard from the legislature’s newly created Office of Health Data Analytics. The office represents another step in our efforts to make the program more effective and more financially stable.
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at amy.neighbors@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
(Laura Leigh Goins, Deputy Chief of Staff for Media Relations – House Majority Leadership)