HB 627 was enacted during the 2026 Legislative Session.  The bill largely made changes to Kentucky’s basic and added reparation benefits provisions, found in KRS Chapter 304 Subtitle 39.  Substantive changes include: 1) a medical expense paid by a reparation obligor shall not exceed the maximum fee allowed or listed under the workers’ compensation fee schedule established by KRS 342.035; 2) the limit for funeral expenses was raised from $1,000 to $5,000; and 3) the limit for basic reparation benefits payable for work loss , survivor’s economic loss, replacement service loss, and survivor’s replacement services loss was raised from $200 to $500.

Pursuant to the language of HB 627, these changes apply to basic and added reparation benefits that are issued or renewed on or after the effective of the Act.  The Act will be effective July 15, 2026.  Based on this language, the Department has determined that the above-described changes will apply to all policies issued or renewed on or after July 15, 2026.  Insurers should timely file any necessary rate and form filings with the Department that reflect these changes for policies issued or renewed on or after July 15, 2026.  In addition, any medical expense paid by an insurer, for policies issued or renewed on or after July 15, 2026, should not exceed the maximum fee allowed or listed under the workers’ compensation fee schedule established by KRS 342.035.

The Physician’s Medical Fee Schedule is reviewed and updated every two years on July 1.  The Kentucky Department of Workers’ Claims has informed the Department that the fee schedule will be updated July 1, 2026.  The Physician’s Medical Fee Schedule is established using medical billing data provided by FAIR Health, Inc., an independent, non-profit organization that collects data for and manages the nation’s largest database of privately billed health insurance claims.  The 2026 edition will be available to order through FAIR Health’s website.  Please visit their Online Product Orders​ page and select Kentucky Workers’ Compensation Fee Schedule to purchase.  

If you have any questions, please contact the Department.  Inquiries can be sent to the Kentucky Department of Insurance, Property and Casualty Division at  DOI.PropertyCasualty@ky.gov.