Local Health Departments Hope for Kentucky Spirit Reimbursements

Jun 10, 2013

Western Kentucky public health departments could expect more than a million dollars in reimbursements from Medicaid-Managed Care Organization Kentucky Spirit. 

Kentucky contracts with MCOs to offer insurance benefits to Medicaid users. 

Early last week, Franklin County Circuit Judge Philip Shepard issued a 13-page order that the Missouri-based care provider pay $8 million to the state. 

This comes after the Commonwealth claimed Kentucky Spirit never paid health departments for Medicaid programs.

Purchase District Health Department Director Kent Koster says the long court battles over funding have left many health departments struggling for money.

"The problem with this is that they let this go long – way, way too long," he said. "I mean, here it is June 10, 2013, and this has been a problem since November first of 2011."

A year ago, Kentucky Spirit announced plans to end its three-year contract with the Commonwealth in July – a year early. Shepard ruled that the insurance company could not violate the contract.