MedicaidCoverageMedium impact
Partial Hospitalization place of service
Kentucky Medicaid·KY · Psychiatry·Coverage
Effective date
Oct 20, 2023
We identified it
Jun 20, 2026
Summary
Kentucky Medicaid will no longer reimburse for partial hospitalization services (individual psychotherapy, patient education, and group psychotherapy) when delivered in patients' homes, effective immediately. These services were temporarily allowed during the Public Health Emergency but must now be provided in appropriate healthcare facilities to be reimbursed.
Action Required
Immediately: Stop billing Kentucky Medicaid for partial hospitalization services (individual psychotherapy, patient education, group psychotherapy) delivered in patients' homes. Billing team must update system to flag home-based partial hospitalization claims for Kentucky Medicaid patients. Providers must transition these services to appropriate healthcare facilities. Claims for home-based partial hospitalization services will be denied by Kentucky Medicaid.