FRANKFORT, Ky. — Governor Andy Beshear submitted a letter to the Centers for Medicare and Medicaid Services (CMS) declaring his intentions to transition to a state-based health care exchange in January 2022. He said a state-based exchange will provide more flexibility than the federal system and save Kentuckians money.
The governor said the COVID-19 pandemic has taught a critical lesson on the importance of health care, saying “a lack of good health care options makes us more vulnerable and less resilient.”
In 2013, Kentucky implemented a state-based exchange known as Kynect. Gov. Beshear called it one of the most successful exchanges in the country. Approximately 500,000 newly eligible Kentuckians were enrolled in Medicaid coverage and Qualified Health Plans.
Former Governor Matt Bevin dismantled Kynect in 2017, which forced people to use the federal exchange.
Gov. Beshear said Kynect can be revived and upgraded, for a one time cost of $5 million. Ongoing operations will cost up to $2 million “at most” according to the governor.
“We have an opportunity to be better, to get healthier, to save money and ultimately to provide that basic human right that is health care,” the governor said.
Several states are transitioning to a state-based exchange to avoid the user fees of the federal exchange, which cost Kentuckians $9.8 million last year, according to Gov. Beshear. Other benefits include a reduction in premiums and integration with the Medicaid program.
The governor estimates a state-based exchange would save Kentuckians $2.8-$3.8 million in first year and $7.8-8.8 million thereafter.
“I believe we can do this much better than the federal government. We proved that many years ago, and as we go forward, this is just going to be one part of a larger set of announcements on health care that we anticipate we will be making in August,” Gov. Beshear said.
The governor's full letter of intent can be found below:
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