PADUCAH — The new plan that privatizes portions of Medicaid could save Kentucky taxpayers more than $1 billion over the next three years and create more than 500 jobs.

But some people who depend on Medicaid to provide health care for their families are concerned how it will affect them.

The governor himself said during the process of turning the Medicaid system over to private companies, there may be some bumps in the road but he promised recipients will not see a break in coverage.

Some people who said they desperately need health care assistance still fear what those changes will mean for their families.

Children at play in Paducah's Forest Hills neighborhood may not have that much to worry about but some of their parents do.

"They got a lot of doctor appointments and I can't afford all of them," Javonna Jones said.

She has three kids and all of them are on Medicaid.

"We need our Medicaid out here. Bills are high," Jones said.

Ilene Nieves, who has one son with serious health problems, finds herself in the same situation.

"I don't make a lot of money. Some people live on budgets and we need to know exactly what to expect and when to expect it," Nieves said.

She wishes she had more details on what the changes meant for her family but the governor is optimistic and said the changes will balance the Medicaid budget, improve coordination of care and save the state more than a billion dollars overall.

"There of course will be bumps in the road as we implement this model but we will act quickly and aggressively to smooth those bumps out," Governor Steve Beshear said.

Pam Truitt with the Family Service Society said every day she sees people who are on and desperately need Medicaid. She said while she'd like to see changes made to the program, she's afraid this might mean people who need help might not be able to get it.

"It's a very complicated program, so I think a lot of times when people hear the cuts, they think it's going to be a bad thing, that its going to eliminate all their services. I'm hoping that's not what this means," Truitt said.

Nieves is keeping her fingers crossed and hoping her kids keep getting the coverage they need.

Kentucky must first receive federal approval of the plan but if it is approved, Medicaid will start enrolling patients in the new plans in October.

So how does it work? It's called managed care. The state awards contracts to companies who look for ways to reduce Medicaid service costs.

There is already one managed care company operating in Kentucky. The state awarded three new contracts to three more companies that are expected to add more than 500 jobs.

These companies contract with doctors and other medical professionals to find cheaper prices.

It just so happens Governor Beshear will be at Midwest Aviation in Paducah to talk about these changes and we'll be there to get more answers on what this means for taxpayers, patients and doctors.