Oppose Devastating Health Care Cuts in HB 500

I am writing to urge you to reject the devastating health care cuts proposed in HB 500 as it moves through the Appropriations and Revenue Committee. These cuts will directly harm Kentucky's state and school employees while leaving hundreds of millions in critical Medicaid funding unaccounted for. The budget caps employer health care contribution growth at just 5% annually, creating a shortfall of $77 million in 2027 and $202 million in 2028. According to the Personnel Cabinet, this will result in a possible 78% increase in employee premiums over two years. A school bus driver will lose $535.18 monthly in health coverage, while a social worker loses $425.92. These are not abstract numbers. These are real people who will face impossible choices between health care and basic necessities. The Medicaid underfunding is equally alarming. HB 500 contains $848 million less for Medicaid over the biennium than the governor recommended, with $183 million missing in 2027 and $629 million in 2028. This unexplained shortfall threatens health care access for Kentucky's most vulnerable residents. The budget also excludes 1,250 new slots in Medicaid waiver programs for people with special care needs and fails to include $8.1 million needed for technology changes to implement new federal work reporting requirements. These cuts are not necessary. The state has $3.7 billion sitting in the Budget Reserve Trust Fund while HB 500 appropriates $1.1 billion less than projected revenues. The apparent goal is to trigger additional income tax cuts, but that priority should not come at the expense of health care for working Kentuckians and vulnerable populations. I urge you to restore full funding for state and school employee health care and eliminate the Medicaid shortfall as the committee considers amendments to HB 500. Kentucky's families deserve better than being forced to choose between financial security and health care access.