Revenue Cycle

Significant Medicaid changes in West Virginia, Kentucky

Patient Financial Services Weekly Advisor, May 26, 2006

Landmark Medicaid legislation in West Virginia may penalize families with a reduction in benefits if they do not sign contracts promising to show up for doctors' appointments and to only use the emergency room for emergencies, reports the New York Times.

West Virginia authorities are taking advantage of a new law that makes it easier to pick and choose which residents receive benefits under Medicaid. In the past, states had to provide the same health benefits to all Medicaid beneficiaries.

The goal is to slow the growth of a Medicaid program that has grown to about $275 billion. States, on average, assume 43% of the overall costs.

Kentucky is also joining West Virginia in taking advantage of the new flexibility. Kentucky will put limits on prescriptions and therapy visits. Authorities there decided to shift the Medicaid population into four types of insurance coverage:

  • the general Medicaid population
  • children
  • elderly
  • developmentally disabled

    Kentucky will issue limits on physical and speech therapy: 15 visits per person per year.

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