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Kentucky Gov. Steve Beshear has a plan for closing a huge gap in the state’s Medicaid budget, but it will require legislative approval.

Kentucky’s Medicaid budget included $238 million in federal matching funds, but the state received only $138 million. To close the gap, Gov. Beshear wants lawmakers to move some second year Medicaid funding forward.

“I was personally involved in some of the briefings and received a very favorable response on this approach, because they feel moving into the managed care area is smart,” he said.

To cover the funds brought forward, the state plans to institute more public-private, managed care programs, control the high costs of radiology and imaging services and step-up anti-fraud initiatives. Medicaid currently serves more than 816,000 Kentuckians.