WHEELER, REGIONAL STAKEHOLDERS CELEBRATE SENATE BILL 280 BECOMING LAW
New Kentucky Medicaid Assistance Program could result in largest Medicaid reimbursement increases for hospitals in state history
FRANKFORT, KY (April 12, 2024)—Governor Andy Beshear held a ceremonial bill signing of Sen. Phillip Wheeler’s Senate Bill 280 this afternoon.
The Kentucky Medicaid Assistance Program (KMAP) will be revolutionary for Kentucky residents’ access to quality care and will bolster Kentucky’s rural hospitals by directing the Cabinet for Health and Family Service to develop a new Medicaid directed payment program for Kentucky that aims to improve access and quality in underserved and rural areas.
Hospitals with a Level II, Level III, and Level IV trauma center that has clinical rotations to booster the physician workforce in Kentucky with a 35 percent or higher Medicaid payor rate would be able to participate in the new plan pursuant to CMS approval. It is estimated that 43 Kentucky hospitals currently meet the requirements of the new plan.
This program evens things for hospitals with less commercial insurance payors versus those with much higher Medicare and Medicaid payers, which are mainly in rural communities.
“The passage of Senate Bill 280 is a major win for rural health care in the commonwealth,” said Wheeler, R-Pikeville. “While our major university-operated health care facilities do a fantastic job of providing world-class care to our residents, we can’t forget the crucial role that our rural hospitals play in providing Kentuckians with care, oftentimes in their most urgent times of need. Countless studies have shown that health care outcomes are improved when patients are able to stay close to home and be near their families and loved ones. If approved by the Center for Medicare and Medicaid Services (CMS), SB 280 will provide rural hospitals with the needed funds to allow for more access to high quality care and services at home. It will also level the health care playing field by allowing classified rural hospitals to receive the same reimbursements that either the University of Kentucky College of Medicine or the University of Louisville School of Medicine normally receive. I want to thank the parties who worked diligently with me to craft the final version of SB 280: University of Kentucky Healthcare Chief of Staff Mark Birdwhistell, Appalachian Regional Hospital President and CEO, Hollie Harris, the Kentucky Hospital Association, and especially my close friend Donovan Blackburn, president and CEO of Kentucky’s only Level II trauma hospital, Pikeville Medical Center.”
Wheeler has long been an advocate for improving Kentucky’s rural communities. During his tenure in the Kentucky Senate, he has championed initiatives to uplift the economies of rural areas and support rural health care patients and providers.
“In the 31st Senate district, our regional health care system is a major economic driver for our regional workforce,” Wheeler said. “Not only does the legislation boost residents’ quality of care in rural Kentucky, but it will also ensure more of our small hospitals keep their doors open, which in turn keeps good-paying jobs in eastern Kentucky and in rural western Kentucky as well.”
Blackburn echoed Wheeler’s applause.
“I cannot find the proper words to express how monumental the passage of Senate Bill 280 for support and preservation of rural health care, particularly in eastern Kentucky,” said Blackburn. “The role that our regional transfer hospitals play for our rural communities is indispensable. I want to thank Senator Wheeler for his tireless efforts to ensure this legislation became law. I truly value our working partnership and our dear friendship. I look forward to continuing to work together to better strengthen and advocate for our rural Kentucky communities.”
CLICK HERE to find more information about Senate Bill 280 and read it in its entirety.
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Please visit Legislature.ky.gov for more information on Senate Majority Caucus members and the 2024 Legislative Session, such as committee schedules, membership, legislation, and more.
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Senator Phillip Wheeler, R-Pikeville, represents Kentucky’s 31st Senate District, including Elliott, Johnson, Lawrence, Martin, and Pike Counties. Wheeler is vice chair of the Senate Economic Development, Tourism, and Labor, and the Senate Judiciary committees. He is also Capital Planning Advisory Board co-chair. Additionally, Wheeler serves as a member of the Senate Transportation, Natural Resources and Energy, State and Local Government, and Transportation committees.
