House Bill 334 enacted by the KY General Assembly in 1994 directed the Cabinet to create the Administrative Hearings Branch to provide administrative judges/hearing officials with special expertise in health care. Judges and hearing officers conduct hearings on appeals of administrative actions by the departments for Medicaid Services; Public Health; Behavioral Health, Developmental and Intellectual Disabilities and Aging and Indpendent Living and offices of Inspector General and Certificate of Need.
In 1996, Executive Order 96-862 reorganized the Cabinet for Human Resources into the Cabinets for Health Services and Families and Children. Under the reorganization, the Administrative Hearings Branch became attached to the Office of Program Support in the Cabinet for Health Services. In 2002, the Office of Program Support was reorganized and the Administrative Hearings Branch became attached to the Division for Quality and Human Resource Management.
A state government reorganization in 2004 merged the Cabinet for Health Services and the Cabinet for Families and Children to create the Cabinet for Health and Family Services. As a result, the Division of Administrative Hearings was created and attached to the Office of Legislative and Public Affairs. Another reorganization in 2008 placed the division in the Office of Communications and Administrative Review.
The division has two branches: the Health Services Administrative Hearings Branch and the Family Support Administrative Hearings Branch. Health Services Administrative Hearings Branch staff conducts hearings in Frankfort and statewide depending on the type of case.