Kentucky's move to managed care delayed

Last spring, to address a $100 million plus Medicaid budget deficit, the governor proposed borrowing from the 2012 budget and making up the loan by moving the state's Medicaid population to managed care. His plan ultimately passed, but not without much debate and line item vetoes.

This summer, the Cabinet for Health and Family Services (CHFS) has been coordinating the details of the transition. In July, the contracts were announced with a promise for an October 1 start date. After the federal government approved the state's request for a waiver to move the program to managed care, CHFS again promised October 1 would mark the official implementation of managed care.

Yesterday, CHFS announced they would delay implementation one month further to November 1st, citing the delay was a response to the request by the Kentucky Hospital Association for more time.

While the savings of the move have already been announced, the question remains, how will the delay impact the fiscal future of the state and the program? How will the Medicaid budget and health care providers fare in this move? Most importantly, how will Kentucky's most vulnerable citizens be affected?

Our concern is that this move is only piecemeal reform; it does not address the fundamental problems inherent in Kentucky's system. Our recent report, An Unsustainable Path, seeks to diagnose the real problems and lay out a clear path towards a more sustainable future.