HB689
Log in to followAN ACT relating to the establishment of a Medicaid state-directed payment program.
Amend KRS 205.6412 to require the Department for Medicaid Services to seek authorization from the United States Centers for Medicare and Medicaid Services to implement a state-directed payment for physician and nonphysician professional services provided to a Medicaid beneficiary by a qualifying hospital's affiliated physician groups or physicians and other professionals employed or contracted by the qualified hospital; require the Department of Medicaid Services to direct Medicaid managed care organizations to issue payments back to January 1, 2026, upon federal approval; RETROACTIVE.
Introduced: February 20, 2026
Last action: April 13, 2026
In effect since July 15, 2026
Acts from the 2026 Regular Session that don't carry an emergency clause or set their own effective date took effect 90 days after the session adjourned (Ky. Constitution § 55).
Plain-language summary
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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Legislative History
Primary Sponsor
Co-sponsors (14)
Roll calls
House: 3rd reading, passed 94-0 with Floor Amendment (1)
Senate: 3rd reading, passed 38-0 with Committee Substitute (1)
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