Gov. Beshear Announces Budget Proposal

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Jan 21st, 2010

Gov. Beshear Announces Budget Proposal

 

Governor Steve Beshear announced his FY 2010-2012 budget proposal in an address to the General Assembly on January 19.  The $18.4 billion budget over the next two years includes $780 million in new revenue from expanded gaming.

 

The budget contained several items of interest relating to health:

 

Medicaid is exempted from General Fund reductions.

·       Additional General Funds of $189 million in FY 11 and $593 million in FY 12 are proposed to replace federal stimulus funds.

·       Funding is also provided for Medicaid coverage of smoking cessation ($1.5 million GF/year) and the elimination of the $20/month co-pay for KCHIP ($379,000 GF/year).

·       The budget will direct General Fund savings in Medicaid of $75 million in FY 11 and $33 million in FY 12 primarily through improved management, utilization review, and collection of funds owed to the program. 

·       Even with these reductions, Medicaid costs are anticipated to exceed funding by $50 million per year in General Funds.  The budget will direct a structural review of Medicaid, comparing it to other states, to find ways to close this gap.

 

Cabinet for Health and Family Services programs other than Medicaid and mental health will be cut 2% in each year of the biennium.

 

Public Employee Health Insurance fundingwill be increased by seven percent in each year of the biennium ($62 million in FY 11 and $111 million in FY 12) to absorb anticipated cost increases. 

 

The legislation incorporating the Governor’s proposed budget was introduced as HB 290 on January 20

 

Click here to view the detailed FY 2010-2012 budget documents.

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