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Tuesday, October 20, 2026 · Updated 12:07 PM MT · 43 stories today
Tue, Oct 20 · 43 stories todayPRO
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Industry · KYOctober 20, 2026

Kentucky Health Plans Group Argues Outdated Sepsis Rule Inflates Billing

In a commentary piece, Tom Stephens, executive director of the Kentucky Association of Health Plans, argues that hospital billing practices, including AI-assisted upcoding and Kentucky's outdated sepsis definition, are driving avoidable healthcare cost growth. He cites a KFF analysis showing hospital care drove 40% of national health spending growth from 2022-2024, and a Blue Health Intelligence review finding a sharp rise in complex-admission coding at some hospitals. He notes Kentucky is one of three states whose 2024 law locks Medicaid plans into using a 1991 sepsis definition rather than the updated 2016 Sepsis-3 criteria, which he says lets hospitals bill more infections as sepsis without changing patient care. Stephens calls on Kentucky to modernize the sepsis law and let health plans flag unsupported charges.

Why it mattersFor Kentucky Medicaid managed care plans and state budget officials, the outdated sepsis coding standard and rising upcoding trends mean higher reimbursement outlays without corresponding gains in patient care quality or outcomes data integrity.

Managed Care · Finance

Read the full article at kentuckylantern.com →
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