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Health and Family Services Cabinet
Cabinet Issues Public Notice for Medicaid Rate Reductions

Press Release Date:  Friday, March 11, 2011  
Contact Information:  Beth Fisher or Emily Moses
(502) 564-6786, ext. 3101 and 3103

Reductions Will Take Effect April 1 if No Budget Agreement is Reached

Today the Cabinet for Health and Family Services, Department for Medicaid Services (DMS), is issuing public notice, as required by federal regulations, related to changes in Medicaid provider reimbursements.

With this action, the Cabinet will significantly reduce payment for specified services for hospitals, nursing facilities, home health agencies, community-based services, pharmacies, comprehensive care centers, primary care centers, local health departments and other providers of Medicaid services in the Commonwealth. The rate reductions are approximately 35 percent. This action is necessary to balance the Fiscal Year 2011 budget shortfall in the Medicaid program.

While a Special Session of the General Assembly to begin on March 14 has been called to address the Medicaid budget, the Cabinet must prepare for the possibility that the General Assembly may not reach agreement. If the General Assembly reaches consensus regarding a solution by April 1, these reductions can be avoided.

A copy of the public notice can be found at the DMS website.



Last Updated 3/11/2011