Commonwealth of Kentucky Cabinet for Health and Family Services

FOR IMMEDIATE RELEASE

Contact: Doug Hogan 502-564-7042, ext. 3467

FRANKFORT, Ky. (Jan. 31, 2019) - The Cabinet for Health and Family Services
(CHFS) today released updated guidance regarding the implementation of Kentucky
HEALTH, which was re-approved in November by the federal Centers for Medicare and
Medicaid Services (CMS). The new information includes updated implementation
milestones for various components of Kentucky HEALTH that will be phased-in during
2019.

On April 1, Kentucky HEALTH will begin with many Medicaid beneficiaries being moved
to the Alternative Benefit Plan (ABP), in which they will access certain vision and dental
services through the My Rewards Account. As of today, more than 480,000
beneficiaries have already accrued over $70 million in My Rewards dollars that they can
use for these services. Additionally, on April 1, most Kentucky HEALTH members will
be moved into the monthly premium payment plan; however, all Kentucky HEALTH
premiums will be waived for the month of April. This will give beneficiaries an
opportunity to become familiar with the program prior to being required to make their first
monthly premium payments.

While the community engagement rollout schedule is still being finalized, CHFS has
established that Community Engagement will begin no sooner than July 1.
Further, the Department for Medicaid Services (DMS) has been working with the
economists in the Office of the State Budget Director (OSDB) to update the Medicaid
budget projection due to significant declines in the number of Medicaid enrollees since
June of 2018. At that time, Medicaid enrollment was in line with previous projections
and there was an estimated $295 million state general fund shortfall in the Medicaid
budget projected over the current biennium. During the last three quarters of calendar
year 2018, there has been a decline in overall Medicaid enrollment of 72,309. Using
updated enrollment data and revenue projections, DMS and OSDB now estimate that,
based upon current Medicaid enrollment levels and assuming continuing economic
conditions, the enacted budget will be sufficient to cover expenses over the current
biennium.

“The pro-business and economic development policies put forth by Governor Bevin’s
administration are achieving historic results for our Commonwealth,” said Secretary
Adam Meier. “As the economy improves and more jobs are created, tens of thousands
of Kentuckians are moving from Medicaid to private insurance through their employers
or the marketplace. This underscores the growing opportunities for Kentuckians to find
good-paying jobs, the demand for a healthy, skilled workforce, and the critical role
Kentucky HEALTH will play in connecting people to robust opportunity development
resources, tuition-free job certification programs, and workforce and volunteer
opportunities in their communities.”

While the new projections provide a more optimistic current outlook for the DMS budget,
Medicaid Commissioner Carol Steckel offered a reminder of the need for caution in
analyzing the information.

“When Congress passed the Affordable Care Act, it changed the face of Medicaid
forever,” concluded Commissioner Steckel. “Kentucky Medicaid, now more than ever, is
subject to the fluctuations in the economy both good and bad. The current analysis is
based on many significant financial and demographic assumptions that will change
along with changes in the economy and other factors.”
More information about the Kentucky HEALTH Implementation timeline will be
available on www.KentuckyHEALTH.ky.gov

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The Cabinet for Health and Family Services is home to most of the state's human
services and healthcare programs, including the Department for Medicaid Services, the
Department for Community Based Services the Department for Public Health, the
Department for Aging and Independent Living and the Department for Behavioral
Health, Developmental and Intellectual Disabilities. CHFS is one of the largest agencies
in state government, with nearly 8,000 full- and part-time employees located across the
Commonwealth focused on improving the lives and health of Kentuckians.