[NFBK] FW: Senate Health Provisions Thrown Out

[Todd E. Stephens]

Good Morning:

 

Please see Justin Jeter’s report below.

 

Respectfully,

 

Todd

From: Jeter, Justin (DD Council) <justin.jeter at ky.gov> 
Sent: Thursday, June 26, 2025 9:57 AM
Subject: Senate Health Provisions Thrown Out

 

This morning,

The following Healthcare-provisions were thrown out of the Senate budget based on the Byrd Rule

High Kentucky Impact

Provider Taxes. (Section 71120)

*	Why this is impactful: Removing this section helps KY retain ~$3.3 billion in funds for Medicaid
*	How: Kentucky taxes certain providers to help pay for our portion of Medicaid match. We tax 4 categories above 3.5% (the proposed limit)

*	Ambulances & Hospitals (through additional, separate programs), Nursing Facilities, ICF-IDD (quasi-institutional settings), and the Supports for Community Living waiver providers
*	The language would have ‘grandfathered’ in provider taxes on nursing facilities and ICF-IDD, but would impact SCL, Hospitals, Ambulances. See chart below.

*	Total Funding Loss to KY Without Hospitals: ,***$136 million
*	Total Funding Loss to KY With Hospitals : ,***$3.3 billion

*	

Spread pricing in Medicaid. (Section 71116)

*	Why this is impactful: Unfortunately, this section would have been helpful to rural pharmacies, especially retail pharmacies – it also would have reduced fraudulent billing practices

Non-Citizen Eligibility

*	Limiting Medicare coverage of certain individuals. (Section 71201)
*	Immigrant Medicaid Eligibility. Section 71110)
*	Permitting premium tax credits only for certain individuals. (Section 71301)
*	Prohibiting federal financial participation under Medicaid and CHIP for individuals without verified citizenship, nationality or satisfactory immigration status. (Section 71109)
*	Disallowing premium tax credit during periods of Medicaid ineligibility due to immigrant status. (Section 71302)
*	Prohibiting Federal Medicaid and Children's Health Insurance Program (CHIP) Funding for Gender Affirming Care. (Section 71117)
*	Expansion of FMAP for certain states providing payments for health care furnished to certain individuals. (Section 71111)

*	Lowers FMAP from 90% -> 80% for states providing Medicaid to noncitizens

 

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