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Senator Meredith's Bill to Streamline Medicaid Managed Care Organizations Gains Senate Approval

Senate Bill 24 passes the Senate with bipartisan support

FRANKFORT, KY (January 16, 2024) — Today, the Kentucky state Senate passed Senate Bill (SB) 24, a measure sponsored by Sen. Stephen Meredith, R-Leitchfield. This legislative initiative represents Sen. Meredith's ongoing commitment to addressing and streamlining the number of managed care organizations (MCOs) contracted by the Department for Medicaid Services, capping them at a maximum of three.

Meredith's SB 24 responds to the mounting administrative challenges faced by health care providers, particularly in rural areas, who grapple with the intricate rules, regulations, and billing practices imposed by multiple Medicaid managed care organizations. The reduction in the number of contracted MCOs is anticipated to yield substantial administrative savings for healthcare providers.

 "I am pleased to see the bipartisan approval of Senate Bill 24, which addresses the critical issue of administrative burden on rural health care providers,” Meredith said. “This burden not only drains resources intended for patient care but also leads to burnout. The bill focuses on streamlining regulations and reducing expenses, recognizing the significant overhead faced by health care providers. It is a crucial step towards a more efficient and supportive health care environment for our dedicated providers and the communities they serve."

The bill, slated to take effect on Jan. 1, 2025, grants the Department for Medicaid Services the authority to administer the state's Medicaid program using various models, including a fee-for-service model, Medicaid managed care model, or other Medicaid delivery system model allowed by federal law. However, if the department chooses the Medicaid managed care model, it is prohibited from awarding contracts to more than three MCOs or entities providing Medicaid benefits under this chapter. Importantly, the legislation clarifies that this limitation does not hinder the administration of the Medicaid program under more than one delivery system model.

SB 24 garnered bipartisan support from the Health Services Committee and the full Senate. The bill now advances to the House of Representatives for further consideration. 

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Senator Stephen Meredith, R-Leitchfield, represents the 5th Senate District, including Breckinridge, Butler, Grayson, Ohio, and Meade Counties. He serves as the Chairman of the Senate Health Services Committee and the Government Contract Review Committee. Additionally, Meredith serves as a member of the Senate Standing Committees on Education; Families and Children; and Veterans, Military Affairs and Public Protection. 


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