Kentucky Announces 1115 Demonstration Waiver Proposal, Kentucky HEALTH

This week, our In Focus section reviews the Section 1115 demonstration waiver proposal, Helping to Engage and Achieve Long Term Health, known as Kentucky HEALTH, unveiled on June 22, 2016, by Governor Matt Bevin’s administration and the Cabinet for Health and Family Services (CHFS). The Kentucky HEALTH waiver offers two models of coverage for members – a new structure of coverage and benefit packages modeled on commercial insurance markets, provided through the state’s existing Medicaid managed care organizations (MCOs); and an employer premium support program. Kentucky HEALTH also includes delivery system reforms targeting substance use disorder, chronic disease management, and improved quality and outcomes. The proposed five-year demonstration is estimated to save more than $2.2 billion in combined federal and state Medicaid spending, with $330 million in state savings. The 30-day comment period for the proposal will run through July 22.

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