Gov. Beshear Pulls Five Kentucky Medicaid Managed Care Contracts

FRANKFORT, Ky. – Governor Andy Beshear has pulled the contracts for five companies that received Medicaid Managed Care contracts in the final days of Governor Matt Bevin’s administration, opening up the door for Passport Health Plan in Louisville to potentially resume being a Managed Care Organization.

“Given the way the previous administration handled this process and lasting public concerns, the only option I had was to cancel the contracts and rebid,” Beshear said.

The contracts are worth nearly $8 billion and state officials estimate 1.3 million people will be covered under these plans.

Beshear said that while his move to rebid the contracts is partially a response to Governor Bevin’s past comments and actions towards Passport, no company will be guaranteed a contract.

“Sure, there may be a contest because it’s a lot of money, it’s a big contract, but people will have confidence in how this selection was done,” Beshear said. “And it also gives us a chance, if there is a change in the current MCOs to new ones, that we are able to do it well.”

Beshear said the previously-issued contracts will be honored until the new ones are rebid, to eliminate the possibility of people being without coverage during the process.

The previous Medicaid contracts were put out for bid when former Governor Bevin’s Medicaid waiver that included work requirements was still under consideration. Governor Beshear rescinded that waiver last week.