- Ten Kentucky health systems have formed a statewide alliance to battle poor health outcomes by sharing best practices and creating efficiencies to reduce the costs of care, Modern Healthcare reported.
- A steering committee comprised of CEOs of the 10 hospitals will guide its development, and more hospitals will be invited to join as the collaborative takes shape.
- The news comes as new Gov. Matt Bevin (R) has vowed to dismantle Kynect, the state-run health insurance exchange, by the end of 2016.
Bevin had also threatened to roll back Medicaid expansion that took place under his Democratic predecessor, but now seems be backpedaling.
His $21 billion, two-year budget plan, presented to lawmakers Jan. 26, would continue the program at current funding levels while Bevin’s administration negotiates for a federal waiver to revamp it, according to the Lexington Herald-Leader.
Medicaid expansion added about 425,000 enrollees to the program, bringing the total to 1.3 million. For traditional Medicaid beneficiaries, the federal government pays 70% of costs, but it currently pays 100% for people brought in under expansion.
While Bevin said he won’t make any immediate cuts to Medicaid, that could change as the state assumes more of the cost of Medicaid expansion. Starting in 2017, Kentucky will foot a small part of the bill, climbing to 10% by 2020.
Ending the Kynect health insurance exchange could cost Kentucky $23 million and drive up premiums, a state lawmaker said.