Down Syndrome of Louisville scrambles to raise revenue ahead of projected January Medicaid cuts

LOUISVILLE, Ky. (WDRB) — Down Syndrome of Louisville helps families from diagnosis to end of life, but cuts to Medicaid could stop families from getting their services.

From speech therapy to job training, DSL serves more than 3,000 people in different stages of life, with all different services.

"All those moments that contribute to helping members live independently and to their maximum potential," said Nick Holmes the Down Syndrome of Louisville Board president.

But funding for those services is now at odds as 60% of the nonprofit's budget is funded through Medicaid. President Donald Trump's administration cut nearly $1 trillion from Medicaid spending last year, arguing the changes will curb fraud and save taxpayers money.

"When people think about Medicaid, it is often that health insurance component, and that's incredibly important for our members as well," Down Syndrome of Louisville Director Taylor Ingram said. "But many of the services that our individuals receive, like coming to our summer camp or our day program, are also a waiver under the Medicaid umbrella."

Kentucky has yet to feel the impact of those cuts. In July, Gov. Andy Beshear announced the use of millions in state surplus funds to close a Medicaid funding gap temporarily and reverse a 4% cut to Medicaid waiver reimbursement rates that was set to take effect Aug. 1.

"The impacts for us are still to be realized, but that does increase the pressure on us to raise funds through other means," Ingram said.

But the nonprofit is expecting a 7% cut starting in January when new rules for Medicaid recipients are required to start in every state.

These guidelines will introduce new federal work requirements, mandating that certain adult enrollees document at least 80 hours of employment, training or community service per month to maintain their coverage.

While individuals with Down syndrome are exempt from the work mandates, they must still verify their disability status annually to receive Medicaid. Under the new 2027 guidelines, that verification window will tighten, forcing families to re-verify their eligibility every six months.

Now, the nonprofit is looking for new ways to raise money to make sure its services don't go away.

"Now we don't plan on cutting any services at DSL, it's not something that we're willing to accept as an option," said Holmes.

Many of Down Syndrome of Louisville's staff know through personal experiences how those services can help families. Some possible solutions that the nonprofit is exploring include new grants, sponsorships or more fundraising events.