Hospitals hopeful governor’s plan to address Medicaid disputes will succeed

-A A +A

Frankfort, Ky. — While disappointed by the veto of House Bill 5, hospitals throughout Kentucky encouraged by the recent  announcement from Gov. Steve Beshear regarding the state’s Medicaid managed care system. At a press conference in Frankfort, Beshear announced a plan to resolve billing disputes which have resulted in private, out-of-state managed care organizations owing millions of dollars to Kentucky hospitals for treatment provided to Medicaid patients.

The Kentucky General Assembly showed overwhelming bipartisan support in both the House of Representatives and Senate, when lawmakers unanimously approved the bill requiring the Kentucky Department of Insurance to enforce the state’s prompt payment laws with respect to Medicaid managed care organizations (MCOs).

“This is a significant issue for a number of our members,” stated KHA President Michael Rust. “Managed care organizations continue to deny payments to providers for services they have already provided to Medicaid patients placing a heavy financial burden on hospitals.”

The governor pledged to implement a strategy for MCOs to reconcile what they owe to providers and for the Department of Insurance to conduct targeted audits of MCOs. Rust indicated that if the governor’s plan is successful, it is a step in the right direction.

KHA and its members have stressed the need for issues with Medicaid reimbursements to be addressed right away.

“Hospitals cannot sustain the losses created by the current system. This could cause a real health care access issue for the millions of Kentuckians who rely on Medicaid, and these problems must be fixed before Medicaid is expanded to include an additional 350,000 Kentuckians.”

About the Kentucky Hospital Association

KHA was established in 1929. The Association represents hospitals, related health care organizations and integrated health care systems dedicated to sustaining and improving the health status of the citizens of Kentucky. The association is headquartered in Louisville.