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Kentucky Medicaid Crisis Looms | Lexington News

Kentucky’s Medicaid system is on the brink as a $269 million shortfall threatens vital services for hundreds of thousands — but a temporary fix bought time. The real crisis looms for next year, with a projected $421 million gap fueled by income tax cuts and legislative refusal to fund Medicaid fully. Lawmakers rejected creative solutions like tapping insurance funds or delaying payments, instead stashing money in a reserve that can only be used with future approval. Without action, healthcare providers could face cuts of 7% or more. The solution? Unlock $290 million from the reserve and add…

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