HB 695 Kentucky House · 2025 Regular Session

AN ACT relating to the Medicaid program and declaring an emergency.

Summary
Amend KRS 205.5372 to prohibit the Department for Medicaid Services from making any change to the Medicaid program without authorization from the General Assembly to do so; amend KRS 205.460 and 205.520 to conform; amend KRS 205.5371 to authorize the Cabinet for Health and Family Services to submit a community engagement waiver for able-bodied Medicaid beneficiaries without dependents; create a new section of KRS Chapter 205 to establish the Kentucky Medicaid rebate sequestration fund as a restricted fund within the Finance and Administration Cabinet; require all money received by the Department for Medicaid Services as rebates from pharmaceutical drug manufacturers to be deposited into the Kentucky Medicaid rebate sequestration fund; amend KRS 205.240 to conform; amend KRS 205.525 to require the Cabinet for Health and Family Services to submit a copy of any waiver renewal application to the Legislative Research Commission concurrent with submission of the application to a federal agency; repeal, reenact, and amend KRS 205.6328 to establish reporting requirements for the Department for Medicaid Services and Medicaid managed care organizations; create new sections of KRS Chapter 205 to require the Department for Medicaid Services to retain beneficiaries' data for at least seven years after the beneficiary is disenrolled from the Medicaid program; require the Department for Medicaid Services and Medicaid managed care organizations to cover up to 100 units of psychoeducational services per Medicaid beneficiary per year; create a new section of KRS Chapter 194A to require the Cabinet for Health and Family Services to notify the Legislative Research Commission of any anticipated barriers to implementing Medicaid-related legislation; direct the Department for Medicaid Services to reinstate all prior authorization requirements for behavioral health services that were in place on January 1, 2020; require the Cabinet for Health and Family Services to procure new Medicaid managed care contracts with an effective date of no later than January 1, 2027; direct Medicaid managed care organizations to collaborate on the development of a behavioral health and substance use disorder treatment services scorecard; require behavioral health and substance use disorder treatment services scorecard to be accessible by the public on each Medicaid managed care organization's website no later than December 31, 2025; EMERGENCY.
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
Mar 2025
House Passage
Mar 2025
Senate Passage
Mar 2025
Signed into Law
Mar 2025
Introduced Feb 19, 2025 Signed Mar 27, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Current/Final · 5 edits
MODERATE
This bill modifies Kentucky's Medicaid program rules, primarily clarifying when the state cabinet must seek legislative approval before making changes to eligibility, coverage, or benefits. The changes add specific exemptions for certain payment programs and the preferred drug list, and adjust the committees that must review fiscal impact assessments.
Scope change
The bill's scope remains focused on Medicaid program governance, but the applicability of certain reporting requirements was narrowed by adding exemptions for specific existing payment programs and the preferred drug list.
REQUIREMENT

Removed the requirement to seek legislative authorization for changes to 'reimbursement rates' in the Medicaid program, narrowing the scope of changes requiring approval.

Added the Medicaid Oversight and Advisory Board to the list of committees that must review fiscal impact assessments, replacing the Office of Budget Review in some contexts.

EXEMPTIONS

Created new exemptions from the legislative authorization requirement for Medicaid payment programs approved before the Act's effective date and for the Medicaid preferred drug list.

DEFINITION

Updated the definition of the Medicaid program to explicitly list specific KRS sections and Kentucky Administrative Regulations that are excluded from the authorization requirements.

TIMELINE

Changed the timing requirement for submitting fiscal impact assessments from 'at least ninety (90) days prior implementing' to 'at least ninety (90) days prior to implementing' for certain emergency changes.

Floor votes · House Mar 4, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
47
Key actions
16
Committee
13
Mar 27, 2025
Upper · Passed
enrolled, signed by President of the Senate
upper
Mar 27, 2025
Lower · Passed
enrolled, signed by Speaker of the House
lower
Mar 27, 2025
Lower · Passed
passed 29-7
lower
Mar 27, 2025
Vetoed
posted for passage for consideration of Governor's veto
lower
Mar 27, 2025
Committee
to Rules (S)
upper
Mar 27, 2025
Lower · Passed
passed 80-20
lower
Mar 27, 2025
Vetoed
veto overridden
lower
Mar 27, 2025
Vetoed
posted for consideration of Governor's veto
lower
Mar 27, 2025
Committee
to Rules (H)
lower
Mar 26, 2025
Vetoed
Vetoed
lower
Mar 14, 2025
Upper · Passed
enrolled, signed by President of the Senate
upper
Mar 14, 2025
Lower · Passed
enrolled, signed by Speaker of the House
lower
Mar 14, 2025
Lower · Passed
passed 72-19
lower
Mar 14, 2025
Lower · Passed
House concurred in Senate Committee Substitute (2)
lower
Mar 14, 2025
Lower · Passed
posted for passage for concurrence in Senate Committee Substitute (2)
lower
Mar 14, 2025
Committee
to Rules (H)
lower
Mar 14, 2025
Lower · Passed
3rd reading, passed 29-7 with Committee Substitute (2)
lower
Mar 14, 2025
Lower · Passed
reported favorably, to Rules with Committee Substitute (2)
lower
Mar 14, 2025
Committee
recommitted to Appropriations & Revenue (S)
upper
Mar 14, 2025
Lower · Passed
passed over and retained in the Orders of the Day
lower
Mar 12, 2025
Lower · Passed
reported favorably, 1st reading, to Calendar with Committee Substitute (1)
lower
Mar 11, 2025
Committee
to Appropriations & Revenue (S)
upper
Mar 5, 2025
Committee
to Committee on Committees (S)
upper
Mar 4, 2025
Lower · Passed
3rd reading, passed 80-19 with Committee Substitute (1)
lower
Mar 4, 2025
Lower · Passed
reported favorably, to Rules with Committee Substitute (1)
lower
Feb 21, 2025
Committee
to Appropriations & Revenue (H)
lower
Feb 19, 2025
Committee
to Committee on Committees (H)
lower
Feb 19, 2025
Introduced
introduced in House
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.