HealthLeaders-InterStudy, a leading provider of managed care industry intelligence, reports that Kentucky's new Medicaid plan, KyHealth Choices, allows for cost sharing and alternative premiums, co-pays for some services, and limits for some services and medications. According to the latest issue of Ohio, Kentucky & Indiana Health Plan Analysis, such changes would previously have required a specific waiver, but can now be implemented through a simple state plan amendment.

"Kentucky is hoping to see some significant cost savings from these changes," said Rick Byrne, HealthLeaders-InterStudy analyst. "They'll be using an assortment of carrots and sticks to drive those savings. They plan to give credits to Medicaid members who practice healthy behaviors, penalize excessive use of emergency departments, and tailor benefits to different groups of recipients, like disabled adults in nursing homes, mothers and children, and working people previously not covered by Medicaid."

The program will be run almost entirely by the Kentucky Cabinet for Health and Family Services -- some of it bought outright from managed care companies that formerly served state recipients. The state will oversee benefit management, care management, and technology infrastructure. As a result, opportunities for private companies to participate will be limited.

Medicaid comprised about $4.7 billion of the state's annual $6.5 billion Health and Human Services budget in each of the last two years, while serving about 700,000 people. The federal government picks up about 70 percent of the tab for Kentucky Medicaid.

  Other health plan news in Ohio, Kentucky, and Indiana:    * Ohio is preparing to launch managed care for its aged, blind and     disabled segment of Medicaid.   * Medical Mutual has called off its possible combination with     Indianapolis-based M*Plan    About Health Plan Analysis 

Health Plan Analysis identifies key health plan trends, allowing healthcare businesses to create comprehensive strategic plans and sales strategies at state and local levels.

About HealthLeaders-InterStudy

HealthLeaders-InterStudy, a company of Decision Resources, Inc. (http://www.decisionresources.com/), is the authoritative source for managed care data and analysis. For more information, please visit http://www.healthleaders-interstudy.com/.

All company, brand, or product names contained in this document may be trademarks or registered trademarks of their respective holders.

  For more information, contact:    Alex Jablokow   Decision Resources   781-296-2562   ajablokow@dresources.com 

SOURCE: HealthLeaders-InterStudy

CONTACT: Alex Jablokow of Decision Resources, +1-781-296-2562,
ajablokow@dresources.com

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