Modern Healthcare - 2021-05-03




A Kentucky judge tossed out contracts awarded to six health insurance companies, citing flaws in the state’s bidding process for $8 billion in Medicaid business. Franklin County Circuit Judge Phillip Shepherd ordered the state to rebid the entire package. In the interim, he said all current contracts will remain in place so health services are not disrupted for about 1.5 million Kentuckians who get health coverage through the federal-state Medicaid health plan. This would make it the third time Kentucky will have to seek bids for the Medicaid managedcare contracts. Molina Healthcare will pay $60 million in cash for Cigna’s Medicaid and managed-care plans in Texas. Through the acquisition, Molina will add approximately 50,000 Medicaid enrollees and boost the total number of lowincome adults and children on its rolls to nearly 4 million. In 2020, Cigna’s Texas Medicaid contracts generated $1 billion in premium revenue. Molina currently operates six managed-care plans in Texas and, at the end of the year, counted 357,000 members in the state.



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