MedicaidCoverageMedium impact
Update on Coverage of Psychoeducation Services (H2027)
Kentucky Medicaid·KY · Psychiatry·Coverage
Effective date
Jul 15, 2026
We identified it
Jun 20, 2026
Summary
Kentucky Medicaid will no longer reimburse standalone psychoeducation services (H2027) effective July 15, 2026. Psychoeducation can still be provided as part of other behavioral health services like IOP and PHP, but cannot be billed separately.
Action Required
By July 15, 2026: Billing team must stop billing H2027 (psychoeducation) as a standalone code for Kentucky Medicaid patients. Update billing system to block H2027 submissions for dates of service on or after July 15, 2026. Ensure psychoeducation services are only billed as part of IOP or PHP programs when clinically appropriate. Remove H2027 from encounter forms for Kentucky Medicaid behavioral health visits.