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KY lawmakers continue to grapple with Medicaid shortfall

Sen. Danny Carroll, R-Paducah (left) confers with Senate Majority Caucus Chair Robby Mills, R-Henderson (right) during February 2026 Senate proceedings.
Hargis David Michael/Kentucky Legislative Research Commission
Sen. Danny Carroll, R-Paducah (left) confers with Senate Majority Caucus Chair Robby Mills, R-Henderson (right) during February 2026 Senate proceedings.

Medicaid funding is a top issue as Kentucky lawmakers continue to deliberate the state budget amid federal cuts.

Medicaid funding is a top issue as Kentucky lawmakers continue to deliberate the state budget amid federal cuts.

More than 1.3 million Kentuckians rely on Medicaid for health coverage, more than 30% of the state’s population, and the program is also critical for keeping the state’s rural hospitals operational.

Emily Beauregard, executive director of Kentucky Voices for Health, said it remains up in the air what the state’s final investment in Medicaid will be.

"We don't know when we're going to see a final version of the budget from the House before it passes over to the Senate," she said. "This is a great time to talk with your legislator about how essential health-care funding is for you and your family."

The House Subcommittee on Health and Family Services is expected to meet today to continue discussions on Medicaid funding and the state budget.

Research shows increased access to Medicaid leads to higher rates of cancer treatment, smoking cessation, improved behavioral health and reduced hospital emergency-room visits.

According to the Kentucky Center for Economic Policy, the Commonwealth specifically saw a large increase in HIV screenings, mammograms, diabetes screenings and other preventive care following Medicaid expansion.

Despite the stretched-thin budget, Beauregard said, lawmakers do have options to help ensure residents don’t lose access to health care.

"One thing that Kentucky has going for us is that we have a big rainy-day fund right now," she said. "It could be a way to sort of help us transition and really figure out how to fund Medicaid and SNAP and those types of really essential programs."

She noted that the number of health-related issues at stake can be overwhelming to Kentuckians who don’t have time to follow legislative developments.

"And to cut through some of that noise, KVH tracks which bills are moving," she said, "and we publish what we call a Health Justice Bill Tracker to highlight good legislation that promotes health equity and access to care."

A report released last year by state Auditor Allison Ball found the Kentucky Department of Medicaid Services failed to take basic steps to prevent payment duplications in cases where a Medicaid recipient moved out of the state and enrolled in another state’s Medicaid program. Between 2019 and 2022, these mistakes led to hundreds of millions of dollars in unnecessary payments

Nadia Ramlagan covers the Ohio Valley and Appalachian region for Public News Service (Kentucky, Ohio, West Virginia). She previously worked as a producer for a public affairs radio show in Baltimore, MD, before moving to Kentucky.