Psychoeducation (H2027) – Kentucky Medicaid Overview
- Apr 6
- 2 min read
Updated: 7 days ago
Effective April 10th, 2026 per house Bill 470: Code H2027 (Psychoeducation) is no longer billable/reimbursable by KY Medicaid and MCO's
Psychoeducation (H2027) is a covered behavioral health service under Kentucky Medicaid. It is defined as a direct, planned, and structured intervention that involves presenting or demonstrating information to an individual and, when appropriate, their family or support system. This overview outlines what the service includes, how it is used, and what is required for reimbursement.
Service Description
Psychoeducation is used with individuals diagnosed with:
Mental health disorders
Substance use disorders
Co-occurring conditions
The service provides information related to the individual’s condition and supports development of skills that assist with recovery and ongoing management.
Content of Psychoeducation
Psychoeducation may include information and instruction on:
The individual’s diagnosis and symptoms
Causes of the condition and developmental impact
Available treatment options and expected benefits
Skills to manage symptoms and improve functioning
Skill-based components may include:
Problem-solving
Communication strategies
Coping skills
Sessions may also address:
Recognition of relapse warning signs
Stress reduction techniques
Development and use of a support network
Role in Treatment
Psychoeducation is considered supportive to clinical care, not a replacement for it. It is delivered as part of an overall behavioral health treatment approach.
Requirements:
Must align with a person-centered, individualized treatment plan
Must be based on medical necessity
Must be documented in the clinical record
The need for psychoeducation should be clearly reflected in the treatment plan
Eligible Participants
Psychoeducation may be provided to:
The individual receiving services
Family members
Caregivers or other members of the support system
Billing Considerations
Psychoeducation must be part of a behavioral health treatment plan to be reimbursable
Services must meet medical necessity criteria
Kentucky Medicaid does not reimburse for:
Court-ordered anger management classes
Educational services that are not tied to treatment
Additional Note
Previous service limits referenced in earlier guidance have been rescinded. Current limits and prior authorization requirements are determined by individual Managed Care Organizations (MCOs).