New bill could directly benefit OH with funds to cover Medicaid costs

January 21, 2021 | 12:07 am

Updated January 20, 2021 | 11:52 pm

File photo by AP Imagery

Gov. Andy Beshear announced Tuesday that Kentucky hospitals could collectively receive an additional $800 million to $1 billion annually to help advance the quality of care for Medicaid members. 

Owensboro Health officials said Wednesday that the legislation allowing for that funding (House Bill 183) would directly benefit its healthcare system. 

“COVID-19 expenses and reimbursement reductions are challenges all health systems face, and we are very appreciative to the Governor and state legislators who worked hard to make this bill a reality,” said OH Director of Marketing Brian Hamby. 

According to Hamby, the new payment initiative would not only benefit Owensboro Health, but “every health system in the Commonwealth of Kentucky, including rural and community-based hospitals.” 

Beshear said the Cabinet for Health and Family Services (CHFS) received approval Jan. 14 from the U.S. Centers for Medical and Medicaid Services (CMS) on a new directed payment initiative that increases inpatient Medicaid payments for Kentucky hospitals. 

Pending Kentucky General Assembly legislative approval and federal approval of detailed plans, payments could begin in March. 

“Health care is a basic human right, and our people deserve the highest quality possible,” Beshear said. “Our hospitals and medical professionals are pillars holding up our communities during this unprecedented time.” 

In order to receive these funds, hospitals must abide by higher quality standards that will be developed in collaboration with CHFS and the Kentucky Hospital Association (KHA). 

CHFS Secretary Eric Friedlander said hospitals will cover the increased cost of the program while HB 183 — which has been filed and is currently pending approval — will provide the flexibility for further protecting smaller, rural hospitals. 

If passed, HB 183 could allow the Department for Medicaid Services (DMS) — an agency of the cabinet — access to an additional $50-$80 million in funding to support the Kentucky Medicaid program. 

HB 183 could affect many Kentuckians, as more than 1.6 million state residents are currently enrolled in Medicaid. 

“The announcement is new and still requires passage of HB 183 by the General Assembly, so we have not learned of a timetable or reimbursement amount yet,” Hamby said. “However, any additional funds will be used to support our mission to heal the sick and to improve the health of the communities we serve.” 

January 21, 2021 | 12:07 am

Share this Article

Other articles you may like