Call to Order and Roll Call
The 6th meeting of the Interim Joint Committee on Appropriations and Revenue was held on Monday, November 17, 2014, at 1:00 PM, in Room 154 of the Capitol Annex. Senator Bob Leeper, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Bob Leeper, Co-Chair; Representative Rick Rand, Co-Chair; Senators David P. Givens, Ernie Harris, Stan Humphries, Ray S. Jones II, Alice Forgy Kerr, Christian McDaniel, and Gerald A. Neal; Representatives Dwight D. Butler, Jesse Crenshaw, Ron Crimm, Robert R. Damron, Mike Denham, Bob M. DeWeese, Myron Dossett, Jim Glenn, Jimmie Lee, Reginald Meeks, Jody Richards, Steven Rudy, Sal Santoro, Rita Smart, Fitz Steele, Tommy Turner, Jim Wayne, Susan Westrom, and Addia Wuchner.
Guests: Eric Friedlander, Deputy Secretary, Cabinet for Health and Family Services; Lisa Lee, Deputy Commissioner, Department of Medicaid Services; Senator Mike Wilson, and Bryanna Carroll, Governmental Affairs Advocacy Manager, Kentucky League of Cities.
LRC Staff: Pam Thomas, John Scott, Charlotte Quarles, Eric Kennedy, Jennifer Hays, and Sheri Mahan.
Representative Wayne moved that the minutes from the previous meeting be approved as written. The motion was seconded by Representative Lee. The minutes were approved by voice vote.
Medicaid Expansion Update
Mr. Eric Friedlander, Deputy Secretary of the Cabinet for Health and Family Services, and Ms. Lisa Lee, Deputy Commissioner of the Department for Medicaid Services, provided an update on the expansion of Kentucky’s Medicaid program under the Affordable Care Act. Mr. Friedlander presented graphs illustrating the rate of insurance coverage before and after Medicaid expansion. An independent study found that the expansion will lead to an estimated 17,000 new jobs, will provide $11 billion in new funding to providers, and will reduce uncompensated care expenses to hospitals by approximately $800 million. He stated that 28 hospitals reported reductions of 80 percent or greater in this category already.
One new area covered under the Medicaid expansion and highlighted by the deputy secretary in his presentation is substance abuse services. For the first time, providers are able to bill for a variety of services provided to address substance abuse. Providing these types of services through Medicaid has resulted in reductions in expenditures under other cabinets and departments from the General Fund. The white paper analyzing the Medicaid expansion in Kentucky is being updated and should be available in January of 2015.
Internet Sweepstakes Cafes
Senator Mike Wilson and Bryanna Carroll, governmental affairs advocacy manager for the Kentucky League of Cities, discussed Senator Wilson’s prefiled bill that addresses the recent proliferation of internet sweepstakes cafes in Kentucky. Senator Wilson said the legislation addresses ambiguities in existing law, making it clear that internet sweepstakes cafes are prohibited. Ms. Carroll described internet sweepstakes cafes as businesses that sell Internet access or prepaid phone cards, and the opportunity to play computer-based casino-style games in which customers can win cash prizes. Each purchase of internet usage or minutes entitles a customer a certain number of sweepstakes entries. The customer determines whether he or she has won by logging on to a computer.
Ms. Carroll said that the League of Cities has requested an opinion on the legality of internet sweepstakes cafes from the Kentucky Attorney General.
Chairman Rand discussed resolutions honoring departing House committee members. Chairman Leeper discussed his departure from the committee and legislature.
There being no further business, the meeting was adjourned at 2:30 p.m.