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HB 2 KY
Became Law

AN ACT relating to Medicaid, making an appropriation therefor, and declaring an emergency.

KY · session 2026RS · Assembly / House · bill

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Introduced Jan 21, 2026

Latest action (Apr 14, 2026) delivered to Secretary of State (Acts Ch. 179)

Summary

Amend KRS 205.5371 to require the Cabinet for Health and Family Services to condition eligibility for enrollment or continued enrollment in the Medicaid program on demonstrated community engagement as required under federal law; require the cabinet to continue to condition eligibility on demonstrated community engagement if federal requirements are abolished, repealed, or otherwise diminished; amend KRS 205.6312 to require the cabinet and any contracted Medicaid managed care organization to impose cost-sharing requirements for Medicaid enrollees as required under federal law no later than January 1, 2027; establish minimum cost-sharing amounts; amend KRS 205.556 and 205.618 to conform; create new sections of KRS Chapter 205 to require the cabinet to, no later than July 1, 2026, begin conducting Medicaid eligibility redeterminations once every 6 months as required under federal law; require the cabinet to access and review certain data when conducting eligibility redeterminations; establish a process for identifying and, when appropriate, disenrolling individuals who are concurrently enrolled in the Kentucky Medicaid program and a Medicaid program administered by another state or states; amend KRS 205.178 to require the cabinet to receive and review information from the Kentucky Lottery Corporation, Department of Corrections, and the Kentucky Horse Racing and Gaming Corporation on at least a monthly basis, the Kentucky Department of Revenue on at least an annual basis, and the Kentucky Transportation Cabinet on a quarterly basis; require the Department for Medicaid Services to enter into a data sharing agreement with the Social Security Administration to receive the full file of death information on at least a quarterly basis; prohibit the cabinet from seeking or requesting an exemption or waiver from federal community engagement requirements related to county unemployment rates unless specifically authorized by the General Assembly to do so; amend KRS 205.5375 to require hospitals to assist presumptively eligible individuals in submitting a full Medicaid application; amend KRS 205.200 to prohibit the cabinet from accepting self-attestation of income, residency, or age for the purpose of determining eligibility for Medicaid or compliance with community engagement requirements; create new sections of KRS Chapter 205 to establish Medicaid managed care organization contracting requirements and penalties; establish the Medicaid managed care organization compliance fund within the State Treasury; establish that amounts in the fund not appropriated at the close of a fiscal year shall not lapse and shall be carried forward; prohibit the expenditure of funds in the account unless expressly appropriated by the General Assembly; require the Department for Medicaid Services to submit recommendations for use of monies in the fund to the Legislative Research Commission by November 1, 2027, and November 1, of each following odd-numbered year; amend KRS 205.533 to require Medicaid managed care organizations to include certain information for providers on their websites; amend KRS 205.534 to require managed care organizations to allow providers 120 days to file an appeal or grievance related to a reduction of denial of a claim; establish penalties for a managed care organization's failure to ensure the timely disposition of any appeal or grievance; require payment of any amount owed to a provider following an appeal to be paid within 30 days; require payments made following an appeal to include interest and reasonable attorney's fees; establish standards and requirements for provider audits; require the inclusion of additional information in the monthly report filed by managed care organizations; require the Department for Medicaid Services to submit an annual report to the Legislative Research Commission related to Medicaid claims, appeals, and grievances; authorize the Department for Medicaid Services to promulgate administrative regulations; create new sections of KRS Chapter 205 to establish requirements for administration of the Medicaid-covered nonemergency medical transportation services; establish requirements for the administration of 1915(c) Medicaid waiver programs; require the Department for Medicaid Services to develop and implement a tiered priority system for assigning 1915(c) Medicaid waiver program slots by January 1, 2027; require administration of Medicaid-covered dental services by an administrative service organization; establish that the administrative service organization shall not assume any financial or insurance risk; limit compensation paid to the administrative service organization to no more than 2% of the actual Medicaid-covered dental service claims paid on an annual basis; require the Department for Medicaid Services to establish a Dental Program Advisory Panel; require the Department for Medicaid Services to employ a dental director; require the Department for Medicaid Services to submit an annual report on the Medicaid dental program to the Legislative Research Commission; create new sections of KRS 7A.270 to 7A.290 to establish legislative findings; require the cabinet to provide the Legislative Research Commission with access to all databases, datasets, electronic records, and files pertaining to any aspect of the Medicaid program determined by the director of the Legislative Research Commission to be necessary for the meaningful and effective discharge of the General Assembly's legislative duties; require the Legislative Research Commission, the University of Kentucky, and the University of Louisville to enter into a partnership to design and develop a web-based healthcare transparency dashboard; require the dashboard be overseen by a subcommittee of the Medicaid Oversight and Advisory Board; require the dashboard be maintained and operated by the Legislative Research Commission; amend KRS 7A.283 to allow the appointment of individuals who are not members of the board to advisory committees or subcommittees upon approval of the Legislative Research Commission; create a new section of KRS Chapter 43 to require the Auditor of Public Accounts to conduct an examination of the state's Medicaid program and Kentucky Children's Health Insurance Program; establish audit reporting requirements; require the Auditor to conduct a review of the Medicaid program and Kentucky Children's Health Insurance Program to assess progress in addressing issues identified in previous examinations; establish that the Office of Program Performance in the Commonwealth Office of the Ombudsman shall conduct all quality control reviews of the Department for Community Based Services for the Medicaid program, Supplemental Nutrition Assistance Program, and Temporary Assistance for Needy Families to comply with federal law and regulations; establish that no other state agency shall conduct these quality control reviews unless otherwise authorized by the General Assembly; amend KRS 7A.286 to establish that examinations conducted by the Auditor may constitute fulfillment of certain duties assigned to the Medicaid Oversight and Advisory Board at the discretion of the Legislative Review Commission; repeal KRS 205.515 related to administration of the Medicaid program; repeal KRS 311A.172 related to nonemergency medical transportation services; appropriate $500,000 in General Fund moneys in fiscal year 2025-2026 for staffing and technology needs in the Office of the Auditor of Public Accounts; create a new section of KRS Chapter 6 to establish a Medicaid impact statement; require any legislation that makes or directs a change to the Medicaid program to be accompanied by a Medicaid impact statement; require certain factors to be analyzed and included in a Medicaid impact statement; require Medicaid impact statements to be completed by an economic consulting firm retained by the Legislative Research Commission; create a new section of KRS Chapter 13A to require the cabinet to provide a draft copy of certain administrative regulations related to the Medicaid program to the Medicaid Oversight and Advisory Board for comment at least 30 days before filing the administrative regulation with the regulations compiler; direct the Medicaid Oversight and Advisory Board to establish a Dental Services Transition Subcommittee; establish membership and duties of the Dental Services Subcommittee; require any contract between the Department for Medicaid Services and a Medicaid managed care organization entered into, renewed, or extended after the effective date of this Act to include notice to the managed care organization of the department's intent to transition to an administrative service organization delivery model for Medicaid-covered dental services; require the cabinet or the Department for Medicaid Services to seek federal approval if it is determined that such approval is necessary; provide authorization from the General Assembly to make changes in the Medicaid program as required under KRS 205.5372(1); direct the Medicaid Oversight and Advisory Board to evaluate the nonemergency medical transportation program and submit findings and recommendations to the Legislative Research Commission by December 31, 2026; APPROPRIATION; EMERGENCY.

Sponsors (5)

Action history (69)

  1. Jan 21, 2026 introduced in House · lower
  2. Jan 21, 2026 to Committee on Committees (H) · lower
  3. Jan 29, 2026 to Appropriations & Revenue (H) · lower
  4. Feb 24, 2026 reported favorably, 1st reading, to Calendar with Committee Substitute (1) · lower
  5. Feb 24, 2026 floor amendments (1), (4), (6), (7), (10), (11), (12), (13) and (16) filed to Committee Substitute, floor amendments (2), (3), (5), (8), (9), (14), (15) and (17) filed to bill · lower
  6. Feb 25, 2026 2nd reading, to Rules · lower
  7. Feb 25, 2026 posted for passage in the Regular Orders of the Day for Thursday, February 26 2026 · lower
  8. Feb 26, 2026 floor amendments (18) and (19) filed to Committee Substitute · lower
  9. Feb 27, 2026 3rd reading · lower
  10. Feb 27, 2026 Floor Amendments (1), (4), (6), (7), (10) and (16) defeated · lower
  11. Feb 27, 2026 passed 77-21 with Committee Substitute (1) and Floor Amendment (18) · lower
  12. Mar 2, 2026 received in Senate · upper
  13. Mar 2, 2026 to Committee on Committees (S) · upper
  14. Mar 13, 2026 to Appropriations & Revenue (S) · upper
  15. Mar 24, 2026 taken from Appropriations & Revenue (S) · upper
  16. Mar 24, 2026 1st reading · lower
  17. Mar 24, 2026 returned to Appropriations & Revenue (S) · upper
  18. Mar 25, 2026 taken from Appropriations & Revenue (S) · upper
  19. Mar 25, 2026 2nd reading · lower
  20. Mar 25, 2026 returned to Appropriations & Revenue (S) · upper
  21. Mar 26, 2026 reassigned to Health Services (S) · upper
  22. Mar 31, 2026 reported favorably, to Rules with Committee Substitute (1) and Committee Amendment (1-title) · lower
  23. Mar 31, 2026 posted for passage in the Regular Orders of the Day for Tuesday, March 31 2026 · lower
  24. Mar 31, 2026 passed over and retained in the Orders of the Day · lower
  25. Mar 31, 2026 floor amendment (1) filed to Committee Substitute · lower
  26. Apr 1, 2026 3rd reading · lower
  27. Apr 1, 2026 floor amendment (1) withdrawn · lower
  28. Apr 1, 2026 passed 32-5 with Committee Substitute (1) and Committee Amendment (1-title) · lower
  29. Apr 1, 2026 received in House · lower
  30. Apr 1, 2026 to Rules (H) · lower
  31. Apr 1, 2026 posted for passage for concurrence in Senate Committee Substitute (1) and Committee Amendment (1-title) · lower
  32. Apr 1, 2026 House refused to concur in Senate Committee Substitute (1) and Committee Amendment (1-title) · lower
  33. Apr 1, 2026 received in Senate · upper
  34. Apr 1, 2026 to Rules (S) · upper
  35. Apr 1, 2026 posted for passage for receding from Senate Committee Substitute (1) and Committee Amendment (1-title) · lower
  36. Apr 1, 2026 Senate refused to recede from Senate Committee Substitute (1) and Committee Amendment (1-title) · lower
  37. Apr 1, 2026 Conference Committee appointed in House and Senate · upper
  38. Apr 1, 2026 Conference Committee report adopted in House and Senate · upper
  39. Apr 1, 2026 Conference Committee report (1) filed in House and Senate · upper
  40. Apr 1, 2026 Free Conference Committee appointed in House and Senate · upper
  41. Apr 1, 2026 Free Conference Committee report filed in House and Senate · upper
  42. Apr 1, 2026 posted for passage for consideration of Free Conference Committee Report · lower
  43. Apr 1, 2026 Free Conference Committee report adopted in Senate · upper
  44. Apr 1, 2026 passed 32-5 · lower
  45. Apr 1, 2026 received in House · lower
  46. Apr 1, 2026 to Rules (H) · lower
  47. Apr 1, 2026 taken from Rules · lower
  48. Apr 1, 2026 posted for passage for consideration of Free Conference Committee Report · lower
  49. Apr 1, 2026 Free Conference Committee report adopted in House · lower
  50. Apr 1, 2026 passed 83-11 · lower
  51. Apr 1, 2026 enrolled, signed by Speaker of the House · lower
  52. Apr 1, 2026 enrolled, signed by President of the Senate · upper
  53. Apr 1, 2026 delivered to Governor · lower
  54. Apr 13, 2026 line items vetoed · lower
  55. Apr 14, 2026 received in House · lower
  56. Apr 14, 2026 to Rules (H) · lower
  57. Apr 14, 2026 taken from Rules · lower
  58. Apr 14, 2026 posted for consideration of Governor's line vetoes · lower
  59. Apr 14, 2026 vetoes overridden · lower
  60. Apr 14, 2026 passed 80-18 · lower
  61. Apr 14, 2026 received in Senate · upper
  62. Apr 14, 2026 to Rules (S) · upper
  63. Apr 14, 2026 posted for passage for consideration of Governor's line vetoes · lower
  64. Apr 14, 2026 vetoes overridden · lower
  65. Apr 14, 2026 passed 32-6 · lower
  66. Apr 14, 2026 received in House · lower
  67. Apr 14, 2026 enrolled, signed by Speaker of the House · lower
  68. Apr 14, 2026 enrolled, signed by President of the Senate · upper
  69. Apr 14, 2026 delivered to Secretary of State (Acts Ch. 179) · lower
Subjects
Administrative Regulations And ProceedingsAdvisory Boards, Commissions, And CommitteesAppropriationsAuditor Of Public AccountsBoards And CommissionsChildren And MinorsContractsDisabilitiesEffective Dates, EmergencyFederal Laws And RegulationsFiscal NoteFundsGeneral AssemblyHealth And Medical ServicesHealth Care ProfessionalsHospitals And Health FacilitiesLegislative Research CommissionMedicaidMental DisabilityReports MandatedState AgenciesStudies DirectedTechnologyUniversities And CollegesWorkforce

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