Waiver Consulting Group — Start any program. In any state.

Kentucky - Integrated Employment — Licensing, Medicaid Enrollment and Startup Requirements

Last reviewed: 2026-09-10

The Kentucky Cabinet for Health and Family Services (CHFS), through the Division of Developmental and Intellectual Disabilities (DDID), certifies agencies to deliver Supported Employment under the Supports for Community Living (SCL) and Michelle P. (MPW) waivers.

Prospective providers cannot submit a certification application until they complete a mandatory DDID New Provider Orientation, offered quarterly. Following DDID certification, agencies must enroll through the Kentucky Medicaid Partner Portal to bill for job development and on-site coaching services.

1. Service Definition and Scope

Supported Employment in Kentucky encompasses job development, job placement, and on-site coaching to assist waiver participants in securing and maintaining competitive, integrated employment at or above minimum wage.

The service is authorized under the SCL and MPW waivers and is highly individualized, precluding facility-based or sheltered workshop settings from billing under this specific service category.

2. Regulatory and Oversight Agencies

Oversight is split between the agency that certifies the provider programmatically and the agency that handles Medicaid enrollment and claims.

DDID handles the programmatic certification and quality monitoring, while DMS manages the financial enrollment and regulatory framework.

3. Gatekeeping Prerequisites: Who Can Even Apply

Kentucky imposes a strict sequential gatekeeping process for SCL and MPW waiver providers. An agency cannot simply apply for Medicaid enrollment.

The absolute prerequisite is attending the DDID New Provider Orientation. Without the certificate of attendance from this quarterly session, any submitted enrollment packet is immediately rejected by the state.

4. Licensure and Certification Requirements

Kentucky does not issue a traditional facility license for Supported Employment; instead, it requires certification as a waiver provider under 907 KAR 7:005.

The certification process involves submitting an extensive enrollment packet to DDID, demonstrating compliance with SCL regulations found in 907 KAR 12:010.

5. Medicaid Provider Enrollment

Once DDID issues the certification letter, the agency applies for Medicaid enrollment via the Kentucky Medicaid Partner Portal.

Providers enroll as a non-credentialed waiver provider using the MAP-811 application format integrated into the online portal.

6. Staffing, Training and Background Checks

Direct support professionals providing Supported Employment must meet specific educational and training benchmarks before billing for services.

Kentucky requires specialized employment training alongside standard HCBS background checks to ensure participant safety and effective job coaching.

7. Documentation, Policies and Records

Certified providers must maintain comprehensive records that align with the HCBS Settings Rule and DDID quality standards.

Documentation must prove that the employment is integrated and that the participant is receiving prevailing wages directly from the employer.

8. Billing, Rates and Claims

Supported Employment is billed as a fee-for-service benefit through the KYHealthNet system, as waiver services are carved out of managed care.

Rates are established by DMS and published in the official SCL and MPW fee schedules.

9. Approval Sequence and Timeline

The end-to-end process from initial inquiry to active billing status is lengthy due to the quarterly orientation schedule and sequential reviews.

Providers should anticipate a minimum of six to nine months to complete all phases of certification and enrollment.

10. Common Denials and Survey Findings

DDID and DMS actively monitor providers, and initial applications are frequently returned for corrections or missing prerequisites.

During annual recertification, surveyors focus heavily on HCBS Settings Rule compliance and proper documentation of integrated work environments.

11. Key Contacts and Resources

Prospective providers must utilize official CHFS channels for orientation registration and regulatory updates.

The DDID Provider Enrollment team is the primary point of contact for the initial phases of the process.

See all Kentucky services · Kentucky Medicaid consulting · book a consultation.