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Bill

SB 217

AN ACT relating to dentistry, making an appropriation therefor, and declaring an emergency.

2026 Regular Session Introduced by Reggie Thomas

Establishes a rural dental incentive program with loan relief, practice grants, and higher Medicaid dental reimbursement to improve access in Kentucky’s underserved areas.

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Bill Summary · SB 217

Overview

SB 217 (2026 Regular Session, Kentucky) establishes a Rural Dental Incentive and Access Program through the University of Kentucky’s Center of Excellence in Rural Health. The bill creates a dedicated Healthcare Worker Loan Relief Program to recruit and retain dentists and other healthcare workers, expands dental workforce initiatives in rural areas, increases Medicaid dental reimbursement in Health Professional Shortage Areas (HPSAs), and appropriates funding to support these efforts. It declares an emergency with an effective date of July 1, 2026.

Main purpose and intent

  • Aligns Kentucky’s Healthcare Worker Loan Relief Program with the federal/state loan repayment framework (KRS 211.165) to recruit and retain healthcare workers, with a focus on dentists and other rural health professionals.
  • Expand rural dental care access by incentivizing dentists to practice in underserved areas, including shortage areas.
  • Strengthen rural dental infrastructure through grants for equipment, office improvements, EHR implementation, and staffing.
  • Improve Medicaid reimbursement for dental services to patients in rural shortage areas and provide credentialing/billing support.

Key provisions and changes

Healthcare Worker Loan Relief Program (KRS 164.936)

  • Administered by the University of Kentucky through the Center of Excellence in Rural Health.
  • Funded by state appropriations and a dedicated Healthcare Worker Loan Relief Fund (trust fund) with income from investments, gifts, grants, and federal funds.
  • Policies must align with KRS 211.165 except where this act provides otherwise.
  • Eligible participants include dentists and, broadly, other healthcare workers (professional, certification, education, employment, and worksite eligibility).
  • Application cycles must be open at least biannually.
  • Award considerations include loan types and amounts; employers are not required to provide a dollar-for-dollar match.

Subsection (3) Temporary dentist-specific incentives (through 2036)

  • Dentists admitted to the program can receive:
    • Up to 5 consecutive years of service with a total maximum loan repayment of $150,000.
    • An additional $100,000 if practicing in a Kentucky county with no actively practicing dentist on the service agreement date.
  • Rural practice grants for dentists owning a practice in a federally designated health professional shortage area (HPSA) allow up to $150,000 for eligible uses (dental equipment/instruments, office renovation/construction, EHR installation, staffing/hiring).
  • Funding distribution: 75% for dentist loan repayment; 25% for rural dental practice grants.

Center of Excellence in Rural Health responsibilities

  • Administer the loan relief program.
  • Collect and analyze data on rural health workforce, status, and policy impacts.
  • Support educational opportunities and innovative models, maintain rural family practice residencies, and advocate for rural health.
  • Potential expansion to additional sites if more funds are appropriated.

Rural Dental Fellows Network (Pilot under KRS 313.035)

  • A pilot program to retain dental professionals with:
    • Renewal stipends, mentorship, telehealth access, and annual regional events.
    • Free access to the Rural Dental Fellows Network for participating dentists.
  • Operated as a pilot until July 1, 2036, unless extended.

Medicaid reimbursement (Section 4)

  • Department for Medicaid Services must increase dental service reimbursements to Medicaid beneficiaries in federally designated HPSAs by 25%.
  • A state-funded technical assistance unit will provide credentialing and billing support for rural providers.

Appropriations (Section 5)

  • $4.4 million per fiscal year (2026-2028) to the Center of Excellence in Rural Health for loan relief and related activities.
  • $600,000 per fiscal year for the Kentucky Board of Dentistry to implement the Rural Dental Fellows Network.
  • $1 million per fiscal year for the Department for Medicaid Services to support enhanced Medicaid dental reimbursement.

Federal compliance and emergency declaration (Sections 6-7)

  • If federal approval is required for implementing the Medicaid rate increase, agencies must seek it within 90 days and may delay only to the extent necessary, awaiting approval.
  • An emergency is declared; the act takes effect July 1, 2026.

Who/what would be affected

  • Rural health professionals, especially dentists, in Kentucky and in federally designated shortage areas.
  • Dental practice owners in rural areas seeking grants for equipment, renovations, EHR systems, and staffing.
  • Medicaid beneficiaries in rural/HPSA areas who would see higher dental reimbursement rates.
  • The University of Kentucky’s Center of Excellence in Rural Health (administrative and reporting responsibilities).
  • The Kentucky Board of Dentistry (implementation of the Rural Dental Fellows Network).
  • State and federal funds (through appropriations and potential federal plan amendments) supporting loan relief and rural health initiatives.

Procedural and timeline aspects

  • Effective date: July 1, 2026.
  • Program administration and policy alignment with existing loan repayment programs, with biannual application cycles.
  • Temporary higher loan repayment eligibility and rural grants for dentists through 2036 unless extended.
  • Ongoing reporting requirements to the Council on Postsecondary Education and the Legislative Research Commission, including detailed program expenditures and, through 2036, data on participants, geographic distribution, retention, and expenditures.
  • Requires potential federal authorization for Section 4 (Medicaid rate increase), with a 90-day deadline to seek approval and a possible delay only if necessary.

Summary

SB 217 creates a targeted rural dental incentive package, centered on loan relief for healthcare workers (notably dentists), rural dental practice grants, and expanded Medicaid dental reimbursement to address access gaps in Kentucky’s rural areas. It consolidates administration under UK’s Center of Excellence in Rural Health, provides multi-year funding, and establishes a Rural Dental Fellows Network to aid retention and professional development. An emergency declaration accelerates implementation, with a July 1, 2026 effective date and a structured reporting framework through 2036 (subject to extension).

Compiled from official sources — confirm details with the bill’s official record.

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