Medicaid Prompt Pay Bill Approved in Kentucky General Assembly, Could Be Vetoed

A bill requiring prompt pay for health care providers participating in Kentucky’s Medicaid managed-care system is heading to the governor’s desk—but it isn’t veto-proof.

The bill,  sponsored by House Speaker Greg Stumbo and would move disputes between providers and managed care organizations to the Department of Insurance to be settled.

Many Medicaid managed-care providers providers over late or non-existent payments from the MCOs for the services they did, repeatedly telling lawmakers their problems.

The House passed the legislation in February and the Senate OKed it on Monday.

But the bill isn’t favored by the MCOs and the Cabinet for Health and Family services, which currently hears disputes, has concerns too, leading some to believe Gov. Steve Beshear will veto it. And if it is vetoed, Stumbo said he’ll make a larger priority in 2014.

“If it’s not addressed I’ll guarantee that’s probably going to be House Bill 1,” Stumbo said.

But the bill was passed after the so-called veto period, leaving it open for Beshear to strike it down. Both the cabinet and the MCOs have expressed concern about the bill.

 Beshear said he’ll review the bill further before making a decision.

“I haven’t made any decision on that. When the bill gets to us we’ll have 10 days to take a look at it, we’ll go back and review everything and see what action we’ll take,” he said.

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