Kentucky legislation · 2026 Regular Session
Kentucky HB689: AN ACT relating to the establishment of a Medicaid state-directed payment program.
Status: Signed into law, April 13, 2026
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.
What the bill says
An act relating to the establishment of a Medicaid state-directed payment program.
From the engrossed text:
AN ACT relating to the establishment of a Medicaid state-directed payment program. Be it enacted by the General Assembly of the Commonwealth of Kentucky: Section 1. KRS 205.6412 is amended to read as follows: To the extent permitted under federal law and in addition to, and separate from, the programs developed pursuant to KRS 205.6406, the department shall develop programs[a program] to improve quality of and access to care for residents of the Commonwealth enrolled in the state's Medicaid program by increasing Medicaid reimbursement rates for qualifying hospitals in accordance with the following: (1)[ (a)] A qualifying hospital shall be eligible to earn enhanced add-on payments from Medicaid managed care organizations based on the qualifying hospital's average commercial rate for services provided, including but not limited to inpatient hospital services, outpatient hospital services, and professional services, if the qualifying hospital: (a) 1. [a. ]Is a participant in the hospital rate improvement program developed pursuant to KRS 205.6406; 2.[b.] Is a Level II, III, or IV trauma center; 3.[c.] Is located in a county in which the percentage of the county's population enrolled in the state's Medicaid program exceeds the statewide median Medicaid enrollment percentage for all counties as posted by the Cabinet for Health and Family Services in the December edition of the Monthly Medicaid Counts by County report for …
Sponsors
- Amy Neighbors (R, HD-021) · primary sponsor
- Kimberly Banta (R, HD-063)
- George Brown (D, HD-077)
- Beverly Chester-Burton (D, HD-044)
- Mike Clines (R, HD-068)
- Stephanie Dietz (R, HD-065)
- Robert Duvall (R, HD-017)
- Kevin Jackson (R, HD-020)
- DJ Johnson (R, HD-013)
- Kim King (R, HD-055)
- Scott Lewis (R, HD-014)
- Shawn McPherson (R, HD-022)
Latest actions
- : signed by Governor (Acts Ch. 117)
- : delivered to Governor
- : enrolled, signed by President of the Senate
- : enrolled, signed by Speaker of the House
- : passed 90-1
- : House concurred in Committee Substitute (1)
- : posted for passage for concurrence in Senate Committee Substitute (1)
- : to Rules (H)
- : received in House
- : 3rd reading, passed 38-0 with Committee Substitute (1)
Votes
- Senate: Floor Vote (SCS 1) RSN# 4062 (March 31, 2026): 38 yea, 0 nay, passed
- House: Final Passage RCS# 403 (March 31, 2026): 90 yea, 1 nay, passed
- House: Pass RCS# 283 (March 18, 2026): 94 yea, 0 nay, passed
Subjects: Medicaid, Health Care Professionals, Hospitals And Health Facilities, Physicians, Retroactive Legislation
Common questions
- What is HB689?
- HB689 is a bill in the Kentucky Legislature (2026 Regular Session): AN ACT relating to the establishment of a Medicaid state-directed payment program.
- What does HB689 do?
- In its own words: An act relating to the establishment of a Medicaid state-directed payment program.
- What is the status of HB689?
- Signed into law as of April 13, 2026. Latest action: signed by Governor (Acts Ch. 117) (April 13, 2026).
- Who sponsored HB689?
- Amy Neighbors (R, HD-021), with 11 co-sponsors.
- Where is the official record for HB689?
- On the Kentucky Legislature website: https://apps.legislature.ky.gov/record/26rs/hb689.html
Source: official Kentucky record. Tracked by Delilah, AI for legislation across all 50 states and Congress.