Kentucky
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House Bill 689

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Legislative History
Last Action	04/13/26: signed by Governor (Acts Ch. 117)
Title	AN ACT relating to the establishment of a Medicaid state-directed payment program.
Bill Documents	Acts Chapter 117 Current/Final Introduced
Bill Request Number	2051
Sponsors	A. Neighbors, K. Banta, G. Brown Jr., B. Chester-Burton, M. Clines, S. Dietz, R. Duvall, K. Jackson, DJ Johnson, K. King, S. Lewis, S. McPherson, M. Meredith, K. Moser, S. Riley
Summary of Enacted Version	Amends KRS 205.6412 to require the Department for Medicaid Services to seek authorization for the United States Centers for Medicare and Medicaid Services to implement a state-directed payment program for physician and nonphysician professional services provided to a Medicaid beneficiary by a qualifying hospital's affiliated physician groups or physicians and other professionals employed or contracted by the qualifying hospital; require the Department for Medicaid Services to terminate the state-directed payment program if an appropriate source of funding for the state match becomes unavailable; establish that the state shall not be liable for providing any reimbursement to the federal government and that qualifying hospitals shall be liable for all reimbursements that may be sought by the federal government; and requires the Department for Medicaid Services to direct Medicaid managed care organizations to issue payments back to January 1, 2026, upon federal approval; RETROACTIVE.
Summary of Original Version	Amend KRS 205.6412 to require the Department for Medicaid Services to seek authorization from the United States Centers for Medicare and Medicaid Services to implement a state-directed payment for physician and nonphysician professional services provided to a Medicaid beneficiary by a qualifying hospital's affiliated physician groups or physicians and other professionals employed or contracted by the qualified hospital; require the Department of Medicaid Services to direct Medicaid managed care organizations to issue payments back to January 1, 2026, upon federal approval; RETROACTIVE.
Index Headings of Original Version	Health Care Professionals - Medicaid state-directed payment, physician and nonphysician professional services, requirement Hospitals And Health Facilities - Medicaid state-directed payment, physician and nonphysician professional services, requirement Medicaid - State-directed payment program, physician and nonphysician professional services, requirement Physicians - Medicaid state-directed payment, physician and nonphysician professional services, requirement Retroactive Legislation - Medicaid state-directed payment, physician and nonphysician professional services, requirement
Jump to Proposed Amendments	House Floor Amendment 1 Senate Committee Substitute 1
Votes	Vote History

Actions

Top | Amendments

02/20/26	introduced in House to Committee on Committees (H)
02/27/26	to Health Services (H)
03/05/26	reported favorably, 1st reading, to Calendar
03/06/26	2nd reading, to Rules
03/16/26	floor amendment (1) filed
03/17/26	posted for passage in the Regular Orders of the Day for Wednesday, March 18 2026
03/18/26	3rd reading, passed 94-0 with Floor Amendment (1)
03/19/26	received in Senate to Committee on Committees (S)
03/24/26	to Health Services (S)
03/25/26	reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1)
03/26/26	2nd reading, to Rules as a consent bill posted for passage in the Consent Orders of the Day for Friday, March 27 2026
03/31/26	3rd reading, passed 38-0 with Committee Substitute (1) received in House to Rules (H) posted for passage for concurrence in Senate Committee Substitute (1) House concurred in Committee Substitute (1) passed 90-1
04/01/26	enrolled, signed by Speaker of the House enrolled, signed by President of the Senate delivered to Governor
04/13/26	signed by Governor (Acts Ch. 117)

Proposed Amendments

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Amendment	House Floor Amendment 1
Sponsor	J. Petrie
Summary	Establish that the nonfederal share, or state match, required for the state-directed payment shall not be from state funds including the general fund or state restricted funds; require the Department for Medicaid Services to terminate a state-directed payment program for which an appropriate source of funding for the nonfederal share is unavailable; establish that the state shall not be liable for providing reimbursement to the federal government if the Centers for Medicare and Medicaid Services seeks to recoup funds associated with a state-directed payment program; establish that the qualifying hospitals that receive state-directed payments shall be jointly and severally liable for reimbursement.
Index Headings	Hospitals And Health Facilities - Medicaid, state-directed payment programs Medicaid - State-directed payment programs

Amendment	Senate Committee Substitute 1
Summary	Retain original provisions, except delete prohibition on use of state funds other than the general fund; revise provisions related to the possible recoupment of funds by a federal agency; make technical corrections.
Index Headings	Medicaid - State-directed payments, liability Universities And Colleges - Medicaid state-directed payments, liability

Last updated: 8/19/2026 3:46 PM (EDT)