August 22, 2018: Frankfort, KY – A diverse group of Kentucky hospital leaders
announced today in Frankfort, KY the launch of Balanced Health Kentucky; a non-profit,
non-partisan organization to support comprehensive state healthcare tax reform to fund
Medicaid expansion in Kentucky.

Hospitals have paid the state provider tax every year since 1994 and are the only
healthcare category that has paid into the state Medicaid fund every year and continue
to be the super majority funding source at 61% of all state revenues.

Balanced Health KY has proactively been working with industry professionals, legal
experts and the Kentucky General Assembly’s former chief economist to offer
lawmakers a complete legal review and an interactive and flexible budgetary toolkit to
empower the General Assembly to craft conservative and comprehensive tax reform to
fund Medicaid expansion.

“Today starts a new and exciting chapter in the history of Kentucky,” says Riggs Lewis,
President of Balanced Health KY. “Kentucky will have an opportunity to lead the nation
in supporting conservative comprehensive state healthcare tax reform that will fund
Medicaid for 500,000 Kentuckians.“

Kentucky’s Medicaid budget is facing a $200-300 million shortfall over the next two
years and that shortfall will nearly double when Kentucky’s federal Medicaid match will
increase from today’s 6% to 10% in 2020, according to administration.

In enacting any reform, the Kentucky General Assembly has the complete authority to
determine how much of the healthcare economy to include and at what rate of taxation
is needed for the Medicaid budget. Balanced Health Kentucky, Inc. seeks to be part of
a conversation about conservative comprehensive tax reform to ensure funding for
expanded Medicaid coverage for Kentucky.

Balanced Health KY does not take a position as to which of the 18 categories to include
or at what rate any category should be taxed; only that the 18 categories are available
for review by the General Assembly.