State Medicaid Watch: Kentucky

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Kentucky will drop a proposal to shift Medicaid money from nursing homes and institutions to serve more people at home or in the community, the state's top health official said yesterday.

Instead, Kentucky will ask the federal government for more flexibility in offering an array of mental-health and mental-retardation services through Medicaid, said Health and Family Services Secretary James Holsinger.

Speaking after a rally that drew about 600 Medicaid users to the Capitol, Holsinger said the latest plan would give the state more freedom to offer less costly services by moving people into the community or their homes if they choose.