​Public Notice Regarding Pharmacy Payment Parity (July 7, 2026) - PDF​

The Kentucky Cabinet for Health and Family Services, Department for Medicaid Services issued Transmittal No. 26-0006 on July 7, 2026, providing public notice under 42 C.F.R. § 447.205 of proposed changes to Kentucky Medicaid and KCHIP pharmacy reimbursement methods and standards. The proposed effective date of the changes is February 1, 2027. The Department is amending its State Plan to comply with Kentucky House Bill 3, which requires Kentucky Medicaid and KCHIP to adhere to the pharmacy reimbursement requirements established in KRS 304.12-237. Under the amended State Plan, pharmacists will be reimbursed for all services provided within their legal scope of practice at a rate not less than that paid to other non-physician practitioners. The reimbursement methodology is a step-down structure calculated at 85% of the applicable physician rate. The Department estimates the total fiscal impact at $39,250.00 in reimbursement costs and $128,100 in system changes. The proposed State Plan amendment is subject to CMS approval and may be modified or revised during the federal review process. Written public comments must be submitted within 30 days of the July 7, 2026 publication date to the Division of Healthcare Policy at DMSSPAS@KY.GOV.