(WKYT) – Gov. Andy Beshear announced on Wednesday his administration will use $255 million in state surplus funds to close a Medicaid funding gap and reverse a 4% cut that was set to take effect Aug. 1.
“Today I’m announcing I’m taking action — my administration will apply 255 million dollars from these funds to close the Medicaid gap and reverse the general assembly’s cuts,” Beshear said.
The governor said the move is intended to protect both patients and providers.
“To make sure that people get the healthcare that they need, that our Kentucky providers aren’t hurt by these cuts,” Beshear said.
Provider relief
Lloyd Elliott, chief operating officer of Easterseals, said the announcement brought relief to her organization, which serves hundreds of clients on Medicaid.
“A lot of anxiety for our staff — what does this mean for our organization, will we continue to be able to provide these services — so it really is a huge relief that this four percent cut is halted for right now,” Elliott said.
Easterseals provides a variety of services for children and adults. Elliott said the cuts could have impacted staffing.
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Parent perspective
Rebecca Lowe’s 8-year-old son, Finn, is autistic and has other disabilities. Medicaid helps pay for his speech and occupational therapies.
“These services have taught Finn life skills, communication skills and how to survive,” Lowe said. “These are skills that he will use for the rest of his life — things like this would not be possible to the average Kentucky special needs family without Medicaid.”
Lowe said Finn’s Medicaid coverage was cut in the past year after the family’s income exceeded eligibility limits.
“Over the last year we have spent $30,860.50 of our own money just to keep Finn safe,” Lowe said.
Lowe said she intends to continue advocating for her son and others.
“Finn may be non-verbal but his mom is not, and I will use my voice to speak for Finn and others with different abilities for the rest of my life,” Lowe said.
There is concern that the surplus fix is temporary and that deeper cuts may come in the future. An estimated 1 million Kentuckians are enrolled in Medicaid.
Republican response
Republican House Speaker David Osborne issued a response, saying in part that lawmakers approved more Medicaid funding than the governor originally requested in the budget proposal filed by the House minority. Osborne’s statement also said the Beshear administration has not provided evidence of why additional money was needed.