MedicaidAdministrativeLow impact
Provider Letter: Foster Care and Participant Directed Services
Kentucky Medicaid·KY · Psychiatry·Provider Letter
Effective date
Oct 26, 2021
We identified it
Jun 20, 2026
Summary
Kentucky Medicaid clarifies that foster parents cannot be hired as Participant Directed Services (PDS) employees for the same minors they care for, as they already receive state payment for foster care. Foster children can still receive PDS services, but from other qualified employees.
Action Required
Immediately: Billing teams serving Kentucky Medicaid 1915(c) waiver participants must verify that PDS employees are not the same individuals receiving foster care payments for those participants. Contact the 1915(c) Waiver Help Desk at (844) 784-5614 or 1915cWaiverHelpDesk@ky.gov for clarification on specific cases.