---
type: "Bill"
title: "AN ACT relating to the establishment of a Medicaid state-directed payment program."
description: "Amend KRS 205.6412 to require the Department for Medicaid Services to seek authorization from the United States Centers for Medicare and Medicaid Services to implement a state-directed payment for physician and nonphysician professional services provided to a Medicaid beneficiary by a qualifying hospital's affiliated physician groups or physicians and other professionals employed or contracted by the qualified hospital; require the Department of Medicaid Services to direct Medicaid managed care organizations to issue payments back to January 1, 2026, upon federal approval; RETROACTIVE."
jurisdiction: "us/states/ky"
legislature: "Kentucky General Assembly"
session: "2026RS"
identifier: "HB 689"
citation: "Kentucky HB 689 (2026RS)"
classification: ["bill"]
subjects: ["Health Care Professionals", "Hospitals And Health Facilities", "Medicaid", "Physicians", "Retroactive Legislation"]
status: "enacted"
primary_sponsors: ["A. Neighbors", "B. Chester-Burton", "DJ Johnson", "G. Brown Jr.", "K. Banta", "K. Jackson", "K. King", "K. Moser", "M. Clines", "M. Meredith", "R. Duvall", "S. Dietz", "S. Lewis", "S. McPherson", "S. Riley"]
version_count: 3
action_count: 24
vote_count: 3
first_action: "2026-02-20T05:00:00+00:00"
last_action: "2026-04-13T04:00:00+00:00"
source: "openstates"
source_identifier: "ocd-bill/ba6c235e-d281-4f21-8b9a-9c443c426646"
source_url: "https://apps.legislature.ky.gov/record/26RS/hb689.html"
source_hash: "68b401aac31254d889cdbc7352f6984919cdbe23bab17a87c1a85e5c8cfccebe"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ky"]
---

# Kentucky HB 689 (2026RS) — AN ACT relating to the establishment of a Medicaid state-directed payment program.

Amend KRS 205.6412 to require the Department for Medicaid Services to seek authorization from the United States Centers for Medicare and Medicaid Services to implement a state-directed payment for physician and nonphysician professional services provided to a Medicaid beneficiary by a qualifying hospital's affiliated physician groups or physicians and other professionals employed or contracted by the qualified hospital; require the Department of Medicaid Services to direct Medicaid managed care organizations to issue payments back to January 1, 2026, upon federal approval; RETROACTIVE.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **Introduced** (filed) — [source](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb689/orig_bill.pdf)
2. **Acts Chapter 117** (committee substitute) — [source](https://apps.legislature.ky.gov/law/acts/26RS/documents/0117.pdf)
3. **Current/Final** (committee substitute) — [source](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb689/bill.pdf)

## Votes

- CONSENT PASSAGE OF HB 689 w/ SCS 1 — **38–0** (pass) · lower
- Pass — **94–0** (pass) · lower
- Final Passage — **90–1** (pass) · lower

## Sponsors

- A. Neighbors — primary (person)
- B. Chester-Burton — primary (person)
- DJ Johnson — primary (person)
- G. Brown Jr. — primary (person)
- K. Banta — primary (person)
- K. Jackson — primary (person)
- K. King — primary (person)
- K. Moser — primary (person)
- M. Clines — primary (person)
- M. Meredith — primary (person)
- R. Duvall — primary (person)
- S. Dietz — primary (person)
- S. Lewis — primary (person)
- S. McPherson — primary (person)
- S. Riley — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2026-02-20T05:00:00+00:00** introduced in House `introduction`
- **2026-02-20T05:00:00+00:00** to Committee on Committees (H) `referral-committee`
- **2026-02-27T05:00:00+00:00** to Health Services (H) `referral-committee`
- **2026-03-05T05:00:00+00:00** reported favorably, 1st reading, to Calendar `committee-passage`
- **2026-03-06T05:00:00+00:00** 2nd reading, to Rules `reading-2`
- **2026-03-16T04:00:00+00:00** floor amendment (1) filed `amendment-introduction`
- **2026-03-17T04:00:00+00:00** posted for passage in the Regular Orders of the Day for Wednesday, March 18 2026
- **2026-03-18T04:00:00+00:00** 3rd reading, passed 94-0 with Floor Amendment (1) `passage, reading-3`
- **2026-03-19T04:00:00+00:00** received in Senate
- **2026-03-19T04:00:00+00:00** to Committee on Committees (S) `referral-committee`
- **2026-03-24T04:00:00+00:00** to Health Services (S) `referral-committee`
- **2026-03-25T04:00:00+00:00** reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1) `committee-passage`
- **2026-03-26T04:00:00+00:00** 2nd reading, to Rules as a consent bill `reading-2`
- **2026-03-26T04:00:00+00:00** posted for passage in the Consent Orders of the Day for Friday, March 27 2026
- **2026-03-31T04:00:00+00:00** 3rd reading, passed 38-0 with Committee Substitute (1) `passage, reading-3`
- **2026-03-31T04:00:00+00:00** received in House
- **2026-03-31T04:00:00+00:00** to Rules (H) `referral-committee`
- **2026-03-31T04:00:00+00:00** posted for passage for concurrence in Senate Committee Substitute (1)
- **2026-03-31T04:00:00+00:00** House concurred in Committee Substitute (1)
- **2026-03-31T04:00:00+00:00** passed 90-1 `passage`
- **2026-04-01T04:00:00+00:00** enrolled, signed by Speaker of the House `passage`
- **2026-04-01T04:00:00+00:00** enrolled, signed by President of the Senate `passage`
- **2026-04-01T04:00:00+00:00** delivered to Governor
- **2026-04-13T04:00:00+00:00** signed by Governor (Acts Ch. 117) `executive-signature`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/ba6c235e-d281-4f21-8b9a-9c443c426646`. Confidence: reported (aggregated from official Kentucky legislature records).