The governor's office is reviewing the version of the budget passed by Kentucky's Senate on Wednesday. The $31 billion in budget cuts reduce payments to companies that administer Medicaid benefits. The savings are intended to be used to increase reimbursement rates for healthcare providers.
During his Team Kentucky update, Governor Andy Beshear said this version of the budget falls short of what is needed for Medicaid in Kentucky.
“This Senate budget will be $2.7 billion short on what's needed for Medicaid over the next two years. Listen, we've got to sit down, we've got to do the budgeting, and it's really clear that what they've put in there is simply not enough, and that is going to be borne by our health care system,” he said.
The governor said some of the biggest impacts would be on rural hospitals, clinics, and doctors who rely on Medicaid payments.
Many rural hospitals and clinics rely on Medicaid funds to remain open. The governor said many of these are the largest employers in their counties.
“You remove those dollars from those communities, you lay off those health care workers, it's not just the rural hospital that closes, it's the restaurant, it's the bank, it's the coffee shop, it's the insurance agency. I would hope that, especially rural legislators, see the challenges that are coming our way in terms of rural healthcare and respond,” he said.
The governor said 1.4 million Kentuckians rely on Medicaid.
He said the Department for Community-Based Services will also take a serious hit under the budget passed by the Senate.
