Passport Health Plan, a health insurance company in Kentucky, may see its reserves fall below state requirements by midyear, CEO Mark Carter said during a meeting with lawmakers Jan. 23, according to local news station WDRB.
Passport Health Plan, which manages Medicaid coverage for 300,000 beneficiaries in Kentucky, is disputing reimbursement rates with Republican Gov. Matt Bevin's Medicaid agency. The agency plans to cut reimbursement to managed care plans starting July 1. Passport Health Plan expects to see its payments fall by $60 million in 2018 and $144 million in 2019.
During the meeting, Mr. Carter denied that Passport is "on the verge of bankruptcy"; however, he said the cuts may force the health plan into insolvency by the Kentucky Department of Insurance as soon as mid-2019.
Republican State Sen. Ralph Alvarado is requesting more information from Passport, including the amount of its cash reserves, according to WDRB. He also said a hearing will be scheduled to address Passport Health Plan's dispute with Kentucky's Medicaid department.
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