Health and Family Services Medicaid Administration
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation70,437,50067,047,40077,182,90082,956,70076,443,600
State Salary and Compensation
Allocation143,6008,30020,000 (2,316,100)
Budget Reduction-General Fund
Total General Fund70,581,10067,055,70074,886,80082,956,70076,443,600
Restricted Funds
Balance Forward3,170,03112,147,96014,633,6008,681,9004,341,000
Current Receipts10,756,2906,590,03911,400,00013,545,30013,162,900
Non-Revenue Receipts45,022,04330,571,32017,666,70017,630,00017,629,800
Total Restricted Funds58,948,36449,309,32043,700,30039,857,20035,133,700
Federal Fund
Balance Forward7,800,59011,048,11814,432,500
Current Receipts197,518,141181,973,579320,426,100241,290,600224,326,100
Non-Revenue Receipts4,089(4,289)
Total Federal Fund205,322,820193,017,408334,858,600241,290,600224,326,100
TOTAL SOURCE OF FUNDS334,852,283309,382,427453,445,700364,104,500335,903,400
EXPENDITURES BY CLASS
Personnel Costs236,001,418211,675,519368,520,600288,967,300265,107,200
Operating Expenses14,287,11216,314,84319,565,20017,118,20017,118,200
Grants Loans Benefits61,367,67552,326,02256,678,00053,678,00053,678,000
TOTAL EXPENDITURES311,656,205280,316,385444,763,800359,763,500335,903,400
EXPENDITURES BY FUND SOURCE
General Fund70,581,10067,055,70074,886,80082,956,70076,443,600
Restricted Funds46,800,40434,675,81035,018,40035,516,20035,133,700
Federal Fund194,274,702178,584,875334,858,600241,290,600224,326,100
TOTAL EXPENDITURES311,656,205280,316,385444,763,800359,763,500335,903,400
EXPENDITURES BY UNIT
Medical Assistance Administration301,737,145271,030,096432,763,800347,785,600323,906,100
KCHIP Administration9,919,0609,286,28912,000,00011,977,90011,997,300
TOTAL EXPENDITURES311,656,205280,316,385444,763,800359,763,500335,903,400

Administrative functions of the Medicaid program and the Kentucky Children's Health Insurance program (KCHIP) include determining applicant eligibility, formulating policy, processing claims, assuring appropriate utilization of medical services, and managed care oversight. For the fee for service elements of the program, claims are paid through contracts with a fiscal agent and a pharmacy benefits administrator. For the managed care elements of the program, a monthly capitation fee for each member is paid. The Medicaid program contracts for medical review of acute care admissions, level of care determinations for long-term care patients, and care reviews for recipients in mental hospitals and psychiatric facilities.

The Department for Community Based Services performs the eligibility determination function on behalf of the Department for Medicaid Services through a contractual arrangement. The Department for Medicaid Services also administers KCHIP, a program to provide health care services for uninsured children with family incomes below 200 percent of the federal poverty level but above the federal income level for the Medicaid Program.