AN ACT relating to the establishment of a Medicaid state-directed payment program.

This bill requires Kentucky's Medicaid agency to seek federal approval to create a payment program that directs Medicaid managed care organizations to pay hospitals' affiliated doctors and other medical professionals at set rates. If approved by the federal government, payments would be applied going back to January 1, 2026. The goal is to establish a structured way for certain healthcare providers to receive Medicaid reimbursements. Who it may affect: Kentuckians enrolled in Medicaid, hospitals, and the physicians and other medical professionals who work with or are employed by those hospitals.

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