Kentucky judge throws out $8B in state Medicaid contracts

A Kentucky judge threw out $8 billion in Medicaid contracts awarded to six different insurance companies, citing multiple flaws in the state's bidding process, according to the Courier Journal

It is the state's second failed attempt at seeking bids for Medicaid contracts with outside healthcare companies. 

In a 35-page order issued April 28, Judge Phillip Shepherd cited the refusal to consider all aspects of bids and a potential conflict of interest at one of the companies as reasons. The judge also said officials refused to allow companies to make lawful oral presentations, and that they had directed state employees that won bids to dispose of their notes, according to the article.

Payers that originally scored contracts were Aetna, Humana, Wellcare Health Insurance of Kentucky, UnitedHealthcare, Molina and Anthem.

Medicaid is Kentucky's largest health plan, with 1.5 million people receiving coverage through the program. Mr. Shepherd said all current contracts will remain in place to ensure health services are not disrupted.

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.