summary
Introduced
02/02/2026
02/02/2026
In Committee
02/09/2026
02/09/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Amend KRS 205.533 to require Medicaid managed care organizations to include certain information for providers on their websites; amend KRS 205.534 to require managed care organizations to allow providers 120 days to file an appeal or grievance related to a reduction or denial of a claim; establish penalties for a managed care organization's failure to ensure the timely disposition of any appeal or grievance; require payment of any amount owed to a provider following an appeal to be paid within 30 days; require payments made following an appeal to include interest in accordance with KRS 304.17A-730 and reasonable attorney's fees; establish standards and requirements for provider audits; require the inclusion of additional information in the monthly report filed by managed care organizations; require the Department for Medicaid Services to submit an annual report to the Legislative Research Commission related to Medicaid claims, appeals, and grievances for the previous state fiscal year; authorize the Department for Medicaid Services to promulgate administrative regulations; require Cabinet for Health and Family Services or the Department for Medicaid Services to seek federal approval if they determine that such approval is necessary.
AI Summary
This bill aims to improve the transparency and fairness of Medicaid managed care organizations (MCOs) by requiring them to provide more information on their websites, including contact details for provider relations and contract representatives, and clear explanations of their appeal processes. It also extends the timeframe for providers to file appeals or grievances related to claim reductions or denials from 60 to 120 days, and mandates that MCOs must resolve appeals within 30 days, with penalties for delays, including interest and attorney's fees on any owed payments. Furthermore, the bill establishes stricter standards for provider audits, requiring MCOs to use sampling methodologies for audit selection unless fraud is suspected, provide detailed written notification to providers about audits, and limit audit timeframes. It also mandates that MCOs report more comprehensive data on claims, appeals, and grievances to the Department for Medicaid Services, which in turn will submit an annual report to the Legislative Research Commission. Finally, the bill allows the Department for Medicaid Services to create necessary regulations and requires the Cabinet for Health and Family Services or the Department for Medicaid Services to seek federal approval if needed to implement these changes without jeopardizing federal funding.
Committee Categories
Health and Social Services
Sponsors (2)
Last Action
to Health Services (H) (on 02/09/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://apps.legislature.ky.gov/record/26RS/hb538.html |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb538/orig_bill.pdf |
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