A Kentucky choose has tossed out contracts awarded to 6 medical insurance firms, citing flaws within the state’s bidding course of for $8 billion in state Medicaid enterprise.
Franklin Circuit Choose Phillip Shepherd ordered the state to rebid the complete package deal, the Courier Journal reported. The issues “solid a cloud over the method’s legitimacy,” Shepherd stated in his order issued Wednesday.
This could make the third time Kentucky must search bids for the contracts, that are for outdoor firms to handle healthcare for individuals coated by Medicaid.
In a short assertion, the state Cupboard for Well being and Household Providers stated: “The choose’s orders are being reviewed and subsequent steps are being decided.”
The primary spherical of contract awards got here beneath former Gov. Matt Bevin in late 2019. The second spherical got here final yr after Gov. Andy Beshear tossed out these contracts and ordered them rebid, citing questions in regards to the awards, though the end result was unchanged.
Shepherd stated all present contracts will stay in place so well being companies will not be disrupted for about 1.5 million Kentuckians who get well being protection by way of the federal-state Medicaid well being plan.
The federal authorities gives round 70% of the prices of the $12-billion-a-year program, which is Kentucky’s largest well being plan.