[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6323045,"mediaKeyId","2343262-2f16ab79a4ead630d68440c76dcf0281","parentId",2343262,"title","Kentucky officials say reprocurement of Medicaid managed-care contracts could cost $2.5–2.8 million","audioSeconds",1159,"startMs",497225,"endMs",1657005,"viewUrl","/Search/View?dp=1&key=2343262-2f16ab79a4ead630d68440c76dcf0281&start=497&end=1657","thumbnailUrl","https://assets.pipeline.soar.com/2343262-2f16ab79a4ead630d68440c76dcf0281/thumbnail_497225.jpg","articleUrl","/articles/6323045/Kentucky/Kentucky-officials-say-reprocurement-of-Medicaid-managed-care-contracts-could-cost-2528-million","mediaUrl","https://secure.pipeline.soar.com/6323045-1fc4ef035bad0c6852340f404e70f132/orig.mp4?Expires=1771146408&Signature=oBdTO8Jik8r2DUsCd254W2oo4AvQRkX0kAU2hqBJAE0DfaxH-8dyg3jgg8SWjqe04Z6ucdyH9w14~EC2o2hIfxv34HdXvpOL0ccXxW6aG6-2TPeTfaHSIqmJn302~mSBuLCU6AF-J7qqwRFxCnNuYqhHXnE3qiV3iuJWUBIGhf1Gydyc7DNLEsWlGfc77NvXb3LsYLazXFiP4mpRcZ~NWKRfomUfpBEF2CB4v~Dx77vcL1bRfXteqJ4E-c2-n3O0~ciMf3xydJK1E8Bo6atBG5mod5-arhN7zZjXKwmOh4yx-oVAx0BS3TSjNgWd-Xb69TjtWPWqyWfunk2S4YowtA__&Key-Pair-Id=KUT5TJCACFTXG","author","Kentucky Legislature","date","2025-02-19T00:00:00Z","article","State Medicaid officials told a Senate committee that reprocurement of the Commonwealth’s managed-care organizations (MCOs) will require an estimated $2.5 million to $2.8 million in administrative spending and additional IT and implementation work.

The estimate came during questioning about Senate Bill 13 at a meeting of the Senate Appropriations and Revenue Committee. “When we procured last time…that’s how much we spent: $2,500,000,” Lisa Lee, commissioner for the Department for Medicaid Services, said of the 2018–19 procurement. Steve Bechtel, the department’s chief financial officer, added the agency applied about 10% growth to that historic figure and rounded to $2.8 million to arrive at the current estimate.

The department said the cost estimate covers reworking the request for proposals (RFP) document, additional oversight staff and procurement consultants, and IT system modifications to accept encounter data and integrate new or replacing MCOs. “We have to bring on additional resources to assist us in modifying that RFP…making sure that we have adequate protocols to oversee the managed care organizations,” Lee said.

Why it matters: the current managed-care contract cycle and federal rule changes are driving a larger procurement effort. Committee members pressed whether the expense is a new, bill-driven cost or a routine programmatic cost the department would incur regardless. “It doesn’t matter if we have 1, 3, 10, 20, I still gotta do the work,” Lee said, adding that the department’s baseline was fiscal year 2023 and that any new administrative request would need a separate budget ask.

Key budget and program details: the department said the administrative costs of reprocurement are treated as administrative activities and therefore are eligible for a 50/50 federal-state match. By contrast, capitation payments for benefits carry the standard 80/20 federal match for benefits. The department said the 2018–19 RFP development contract cost approximately $2,000,000 and that the agency spent roughly $1.9 million on that effort.

Committee members raised additional cost uncertainties. Lawmakers asked whether reducing the number of MCOs (for example, from five to three) would produce administration savings that offset procurement costs. Officials said some administrative savings could occur, but other costs — member transitions, provider negotiations and potential market consolidation — could offset or exceed savings. “There is going to be a 40% reduction no matter what happens,” a department official said, referring to a hypothetical reduction in the number of MCOs, and added that member transition costs and rate negotiation risks are difficult to quantify in advance.

Timing and scope: department staff said RFP development and procurement can take six to eight months depending on required changes and that new Centers for Medicare & Medicaid Services (CMS) managed-care final rules released in mid-2024 must be incorporated into the RFP. Officials said they plan to carve out specialized populations — for example, foster-care services — into separate procurements rather than a single omnibus RFP as was done previously.

What the committee recorded: no formal committee vote on Senate Bill 13 occurred during the session covered by this transcript. Committee members asked the department to return with more precise timelines and a formal budget request; staff indicated any formal administrative appropriation would be requested in the next biennial budget process.

Ending: Committee members thanked department staff for the briefing and requested follow-up information tying specific cost elements to procurement milestones.

","mediaType","Video","parentTitle","Senate Standing on Appropriations and Revenue (2-19-25)","oneSentenceSummary","State Medicaid officials told a Senate committee that reprocurement of the Commonwealth’s managed-care organizations (MCOs) will require an estimated $2.5 million to $2.8 million in administrative spending and additional IT and implementation work.","taxTitle","2025 Legislature KY, Kentucky","taxId",77680,"location","Kentucky","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6323037,"Senate committee approves resolution urging revenue office to study issuing wallet-sized tax-exempt cards for farmers",286,1547784,1834725,"/Search/View?dp=1&key=2343262-2f16ab79a4ead630d68440c76dcf0281&start=1547&end=1834","https://assets.pipeline.soar.com/2343262-2f16ab79a4ead630d68440c76dcf0281/thumbnail_1547784.jpg","/articles/6323037/Kentucky/Senate-committee-approves-resolution-urging-revenue-office-to-study-issuing-wallet-sized-tax-exempt-cards-for-farmers","https://secure.pipeline.soar.com/6323037-ec2729f5f701a9110860097048775dde/orig.mp4?Expires=1771146408&Signature=f~jcfKpSmZkUFZv2LCXIwKfdHnZRzQ1eGS6EVK2QMFmUEhrq76Gt99D2pwNHAWortIIjhrTHaiky9pmvbm6hNOwAVBgt-U8A2PSLUvIwhl3HWOT9FiMLZ966qiZsHTuEYIucACm2q2DKu5qq9druklMsqxJESomJSr4efMW8ut0SxGgWLRYyLwlr~j6-zf2LwL0RiVfxtTBEdp~A5wuBxtVVlLc~ry0shOEpjqGgJ58wsq0vNVofYPzwdoUlIgK5hXmY05k8IQUX7DnAAHKN8-8XOe~cDS3zPb0hw~lFcb-1CLS8iZpLo1UP1hUaMFyb46GpcO-3jWcTrBJLlcOufw__&Key-Pair-Id=KUT5TJCACFTXG","The Senate Appropriations and Revenue Committee voted to give favorable expression to Senate Joint Resolution 25, which asks the state Revenue Cabinet to study issuing wallet-sized tax-exempt cards to farmers and report back during the interim session.

“ It simply provides, [for] the revenue department [to] provide them with a tax exempt card with their tax exempt numbers that they can carry in their wallets,” the sponsor told the committee, describing the change as a convenience for farmers who currently carry an 8-by-11 printout. The sponsor said the resolution does not create an appropriation or require the General Assembly to commit funds; it only requests a report on potential costs and software solutions other states use.

The committee recorded a motion from Senator Givens and a second from Senator Nunn. Several senators recorded aye votes during roll call. Chair McDaniel announced the measure had the required affirmative votes and “passes with favorable expression onto the floor.” The committee did not specify a fiscal note in the record; the sponsor said the Revenue Cabinet indicated it could implement the cards but the committee wanted the cabinet to appear during the interim to give a cost estimate.

Votes at a glance: motion to give SJR 25 favorable expression — mover: Sen. Givens; second: Sen. Nunn; outcome: approved; roll-call yea votes recorded in the transcript include Senator Boswell, Senator Funky Fromeier, Senator Givens, Senator Meydon, Senator Richardson and Chair McDaniel; committee announcement recorded 10 yeas and 0 nays.

Ending: The committee advanced the resolution with a recommendation that the Revenue Cabinet present cost options during the interim; the resolution makes no appropriation or binding commitment by the General Assembly.

","The Appropriations and Revenue Committee gave favorable expression to Senate Joint Resolution 25, which asks the revenue cabinet to study providing farmers with wallet-sized tax-exempt cards and report during the interim; motion by Sen. Givens, second by Sen. Nunn, passed 10–0",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6323042,"Kentucky public health officials cite testing and labor costs as reason for higher fiscal estimate on private-pool rentals",0,147320,"/Search/View?dp=1&key=2343262-2f16ab79a4ead630d68440c76dcf0281&start=147&end=147","https://assets.pipeline.soar.com/2343262-2f16ab79a4ead630d68440c76dcf0281/thumbnail_147320.jpg","/articles/6323042/Kentucky/Kentucky-public-health-officials-cite-testing-and-labor-costs-as-reason-for-higher-fiscal-estimate-on-private-pool-rentals","https://secure.pipeline.soar.com/6323042-da74a93dd9cae493047350f57e13a5b5/orig.mp4?Expires=1771146408&Signature=E2zX8OD5RdtyltVnPKxr8~9l1m8ZZRjwjM9Uz0sh7icsGB2d3USBcdQRuDOhOv8NmhA61LoIFiYEmG63s-sgDh02FWbEAjeQvb21BitNIbxyyXgGPbxhYrPgyu57uAMi3eFveOvAP-V1pK3kvZyk2TzmnDrIDM-1vjBNGqY13KMryawGQ1dJsVk3av9lYEOG-GoTPvYO6303Hbj8DHNs7078lpgqX1yZ0elCVWHAqeO6NiBePp0ctHmT2q6406nyDyGlmh-8iqtaPMNnrkkkdEfA4Na939eqQ87o2wcUx6GSEeZi0Iq9bZC9mj1zdPlwI7AcEWr0tDP5DQxo~mrxng__&Key-Pair-Id=KUT5TJCACFTXG","Department for Public Health staff told the Senate Appropriations and Revenue Committee that a large-scale waterborne or foodborne disease outbreak investigation costs roughly $85,000 and that the department’s laboratory costs could rise if private swimming pools are rented to the public.

“ We have a cost estimate of about $85,000 for any type of large scale waterborne, foodborne disease outbreak investigation,” Julie Brooks, a policy specialist with the Department for Public Health, said. The department said that figure covers additional staff time beyond routine work and laboratory costs, and that the figure derives from a large outbreak investigation in February 2014.

Brooks and branch managers told the committee the department’s estimate that private-pool rental could create between 50 and 100 additional outbreak investigations is a ballpark figure tied to growing rental activity, not a documented forecast. “It is a ballpark estimate that there is the potential for an increase as private swimming pools become more popular as rented to members of the general public,” Brooks said.

Committee members pressed officials on the difference between that 50–100 range and the department’s actual case history. Brooks corrected an earlier count and said 14 investigations tied to private pools were recorded over the last five years; in 2024 the department reported about 822 overall waterborne cases, of which eight were tied to public swimming pools. Committee members pointed to the Legislative Research Commission’s (LRC) fiscal analysis, which listed a much smaller number of investigations, and asked why the executive-branch estimate differed.

Officials explained differences arise from scope and method. The department said it does not actively regulate private pools except when the private pool is “held out for rent,” in which case the pool can meet the statutory definition of a public pool and fall under regulation. “We do not currently regulate private pools. They are excluded by definition,” Erica Brightfield, environmental management branch manager, explained; she added the regulatory issue is rental activity rather than construction standards, which public pools must meet.

Laboratory capacity was a repeated concern: the department said some tests for waterborne pathogens require outside laboratories and that would increase laboratory costs beyond the core budget. Officials also acknowledged the department has baseline funding for routine outbreak work but that certain laboratory expenses and the extra staff time for major investigations would be additional costs.

What the committee recorded: no formal committee action on Senate Bill 61 occurred in the transcript. Lawmakers asked for clarification on numbers and advised improved coordination between executive offices and the legislative staff when fiscal analyses are circulated.

Ending: Committee members thanked public health staff for testifying and said they would expect clearer, itemized fiscal analyses if the executive branch submits cost estimates outside the LRC process.

","Department for Public Health told senators that large-scale waterborne outbreak investigations can cost about $85,000 each and that private pools rented to the public could increase laboratory and investigation costs; lawmakers questioned a 50–100 incident estimate and disputed available case counts","actionData","errors"]

Article not found

Kentucky officials say reprocurement of Medicaid managed-care contracts could cost $2.5–2.8 million

Senate committee approves resolution urging revenue office to study issuing wallet-sized tax-exempt cards for farmers

Kentucky public health officials cite testing and labor costs as reason for higher fiscal estimate on private-pool rentals