Beshear Reversed a 4% Medicaid Cut Set to Hit August 1
Kentucky Gov. Andy Beshear announced on July 22, 2026, that a 4% cut to Medicaid provider reimbursements will not take effect. The cuts had been scheduled to begin August 1, 2026, after his administration notified providers in June.
An unexpected corporate income tax payment of $255 million, combined with additional late-year revenue, allowed the state to reverse course. Beshear said his administration converted a projected $156 million deficit into a $476 million surplus.
$476 million Kentucky’s fiscal year surplus after an unexpected corporate tax payment, enough to cancel Medicaid cuts through June 2027
That surplus covers Medicaid provider payments only through the current fiscal year, which ends in late June 2027. Beshear said the one-time revenue windfall should not be treated as a guaranteed annual source.
Disability Waiver Slots and Senior Meals Are Also Restored
The reversal protects more than general provider rates. Beshear announced full funding for all authorized Michelle P. Waiver slots, which cover Kentuckians with intellectual or developmental disabilities who need nursing facility-level care. He also redirected $4 million into the state’s Senior Meal program.
Hundreds of Kentuckians with disabilities traveled to Frankfort on July 17, 2026, to demand protection for these services. Their advocacy came less than a week before Beshear’s reversal.
The Budget Fight Is Not Over
Beshear attributed the original cuts to the budget passed by the Republican-controlled General Assembly, saying it left him without adequate funds. Legislative leaders countered that his administration could better manage existing appropriations.
A separate dispute complicated the picture. Beshear signed an executive order in May 2026 reducing the state gas tax by 10 cents. Lawmakers, including Senate Transportation Committee Chair Sen. Jimmy Higdon (R-Lebanon), estimated the move cost the road fund $26.8 million for one month. Beshear is now putting $18 million into the road fund as part of Wednesday’s announcement.
None of the announced changes extend beyond this fiscal year. Beshear said the General Assembly “absolutely” needs to reopen the budget in January 2026 to secure ongoing Medicaid funding.
What You Can Do Now
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Call your Kentucky state representative and senator at (502) 564-8100 and tell them to fully fund Medicaid provider rates and Michelle P. Waiver slots when the legislature reopens the budget in January 2027. Name the specific programs. Constituents who live in districts with disability service providers carry the most weight.
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Contact the Kentucky Governor’s office at (502) 564-2611 and urge Beshear to submit a detailed budget proposal in January 2027 that treats Medicaid provider funding as a baseline, not a discretionary line item subject to surplus availability.
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Find your Kentucky legislators at legislature.ky.gov/Legislators and send written comments asking them to prioritize Medicaid in any special session or January budget revision. Reference the Michelle P. Waiver and the Senior Meal program by name.
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Track the Kentucky Cabinet for Health and Family Services at chfs.ky.gov for new provider notices Beshear said will go out “shortly.” If you are a provider or caregiver, document any delayed notice and share it with advocacy organizations like the Kentucky Disability Coalition.
Sources
Kentucky Lantern: Beshear Reverses 4% Kentucky Medicaid Provider Cuts Kentucky Lantern: Kentuckians With Disabilities Say 4% Medicaid Cut Is a Threat Kentucky Cabinet for Health and Family Services: Michelle P. Waiver Program Overview