KRS 199.680: Nonreimbursement of out -of-state providers of residential care for

children -- Exception -- Administrative regulations.

(1) The Department for Community Based Services and the Department for Medicaid

Services shall not reimburse an out -of-state provider of residential care for children

whose care is paid by state general funds or state administered federal funds unless

the Department for Medicaid Services or the Department for Community Based

Services or a designated agent thereof has determined that t here is no provider

within the Commonwealth that is capable and willing to provide comparable

services at a comparable cost per child to those that would be delivered by the out -

of-state provider. An exception may be made if:

(a) The identified in -state re source is farther away from the child's parent or

guardian than a similar out-of-state resource; or

(b) The services offered by the out -of-state resource is deemed by either

department or a designated agent thereof to be more appropriate for the

individual child than the services offered by the in-state provider.

(2) Prior to promulgating administrative regulations governing the determination of the

availability of providers of residential care within the Commonwealth, the

Department for Medicaid Services a nd the Department for Community Based

Services shall establish uniform conditions, requirements, and exceptions for the

determination of the availability of providers of residential care within the

Commonwealth.

(3) Each department shall promulgate an admi nistrative regulation in accordance with

KRS Chapter 13A that contains the uniform conditions, requirements, and

exceptions for the determination of the availability of providers of residential care

within the Commonwealth established under subsection (2) of this section.