Call to Order and Roll Call
The 1st meeting of the Budget Review Subcommittee on Human Resources of the Interim Joint Committee on Appropriations and Revenue was held on<Day> Monday, August 1, 2016, at 10:00 AM, in Room 131 of the Capitol Annex. Representative Joni L. Jenkins, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Representative Joni L. Jenkins, Co-Chair; Senators Julie Raque Adams, Carroll Gibson, and Morgan McGarvey; Representatives George Brown Jr., Tom Burch, Bob M. DeWeese, Mary Lou Marzian, Darryl T. Owens, David Watkins, and Addia Wuchner.
Guests: Vicky Yates Brown Glisson, Secretary, Cabinet for Health and Family Services (CHFS); Tim Feeley, Deputy Secretary, CHFS; Stephen Miller, Commissioner, Department for Medicaid Services, CHFS; Cindy Murray, Budget Director, CHFS; Scott Brinkman, Secretary, Executive Cabinet; Adam Meier, Deputy Chief of Staff for Policy, Office of the Governor; and Debbie Anderson, Commissioner, Department for Aging and Independent Living, CHFS.
LRC Staff: Miriam Fordham, Jonathan Eakin, and Benjamin Thompson.
Update on Medicaid Section 1115 Waiver
Secretary Glisson, Secretary Brinkman, Commissioner Miller, and Mr. Meier presented an update on the Department for Medicaid Services and the status of the Section 1115 waiver, otherwise known as Kentucky HEALTH.
In response to a question from Rep. Marzian, Commissioner Miller stated that state costs for Medicaid are projected to increase by $250 million over 18 months starting in January, 2017.
In response to a question from Chair Jenkins, Commissioner Miller confirmed that contract renegotiations had taken place with Medicaid Managed Care Organizations, and a new six month contract went into effect on July first.
In response to a question from Rep. Burch, Mr. Meier stated that enrollees in Kentucky HEALTH would be required to engage with their community in either a work or volunteer setting for up to 20 hours per week, depending on how long they are enrolled in the program, in order to remain in the program. Mr. Meier said this requirement does not extend to traditional Medicaid members or to primary family caregivers.
In response to a question from Chair Jenkins, Mr. Meier noted that the weekly hour requirement for Kentucky HEALTH would likely be calculated on a monthly basis.
In response to questions from Rep. Marzian, Mr. Meier stated that since Kentucky HEALTH would be a pilot program, it would be phased in county by county. Mr. Meier said he did not know how many Kentucky employers provide health insurance to employees. Secretary Glisson confirmed that, instead of co-pays during office visits, enrollees would be required to pay a monthly premium based on levels of income.
In response to a question from Chair Jenkins, Secretary Glisson stated that, after all exempted members have been accounted for, the Kentucky HEALTH plan would cover about 215,000 able-bodied Kentuckians.
In response to a question from Rep. Owens, Commissioner Miller said that the cabinet expects the Section 1115 waiver to be approved.
In response to a question from Chair Jenkins, Mr. Meier said that the waiver application would likely be submitted in the next few weeks.
Update on Implementation of Budget Reductions - Cabinet for Health and Family Services
Secretary Glisson, Deputy Secretary Feeley, and Ms. Murray presented an update on the Cabinet for Health and Family Services' (CHFS) implementation of budget reductions.
In response to a question from Chair Jenkins, Ms. Murray stated that, since local health departments will be receiving more retirement funding than in the past, the discretionary funds they receive will decrease accordingly. Commissioner Anderson said that issues with the Alzheimer's center in Somerset are not due to budget reductions.
In response to a question from Rep. Owens, Secretary Glisson said that CHFS is attempting to establish a career ladder for social workers in addition to the salary increases that were written into the budget.
In response to questions from Chair Jenkins, Secretary Glisson stated that, while the issues with benefind are improved, there is still a backlog for long-term-care cases. Secretary Glisson said CHFS is working to find a solution to that problem.
There being no further business before the subcommittee, the meeting was adjourned at 12:03 PM.