Kentucky Spirit Exits Ky. Medicaid Managed Care Program

Jul 10, 2013

Medicaid managed care organization Kentucky Spirit has officially exited the commonwealth, leaving health officials with approximately 125,000 members to transfer to other MCOs.

The move occurred in the early morning hours Saturday after the Kentucky Court of Appeals had previously denied the state’s emergency motion for a mandatory injunction to keep Kentucky Spirit from leaving.

Cabinet for Health and Family Services spokeswoman Jill Midkiff said MCOs Coventry Cares and WellCare have agreed to make this as smooth a transition as possible.

Midkiff said the cabinet will soon commence legal action against Kentucky Spirit seeking damages from what they call a breach of contract.

Kentucky Spirit said it couldn't operate in the state without incurring massive losses, and claims the state provided it with bad data.

Based on a judge’s ruling, Kentucky Spirit still owes $8 million to 59 Kentucky public health departments for preventative care services they refused to pay for.