The Kentucky Senate passed a measure sponsored by state Sen. Steve Meredith, R-Leitchfield, that restructures the number of managed care organizations (MCOs) contracted by the Department for Medicaid Services.
“This legislative initiative represents Sen. Meredith’s ongoing commitment to addressing and streamlining the number of MCOs contracted by the Department for Medicaid Services, capping them at a maximum of three,” Meredith’s office said in a press release.
Senate Bill SB 24 responds to the mounting administrative challenges faced by healthcare providers, particularly in rural areas, who grapple with the intricate rules, regulations, and billing practices imposed by multiple Medicaid MCOs.
The reduction in the number of contracted MCOs is anticipated to yield substantial administrative savings for healthcare providers, officials said.
“I am pleased to see the bipartisan approval of Senate Bill 24, which addresses the critical issue of administrative burden on rural health care providers,” Meredith said. “This burden not only drains resources intended for patient care but also leads to burnout. The bill focuses on streamlining regulations and reducing expenses, recognizing the significant overhead faced by health care providers. It is a crucial step towards a more efficient and supportive health care environment for our dedicated providers and the communities they serve.”
The bill, if approved by the House, would take effect on January 1, 2025, and grants the Department for Medicaid Services the authority to administer the state’s Medicaid program using various models, including a fee-for-service model, Medicaid managed care model or other Medicaid delivery system model allowed by federal law.
However, if the department chooses the Medicaid managed care model, it is prohibited from awarding contracts to more than three MCOs or entities providing Medicaid benefits.
“Importantly, the legislation clarifies that this limitation does not hinder the administration of the Medicaid program under more than one delivery system model,” according to Meredith’s office.
SB 24 garnered bipartisan support from the Health Services Committee and the full Senate. The bill now advances to the House for its consideration.
Stay updated on the 2024 Regular Session at www.KET.org/legislature. For comprehensive information on bills, committees, and legislative activities, visit www.Legislature.ky.gov.
By Ken Howlett, News Director
Contact Ken at ken@k105.com
