Judge tosses $8B in state Medicaid contracts, orders them bid again

Bizar Male

Citing multiple flaws in the state’s bidding process for $8 billion in state Medicaid business, a judge has tossed out the contracts awarded to six national health insurance companies and ordered the state to rebid the entire package.

This would make the third time Kentucky will have to seek bids for the lucrative contracts, which are for outside companies to manage health care for people covered by Medicaid.

In an order issued Wednesday, Franklin Circuit Judge Phillip Shepherd said multiple flaws “cast a cloud over the process’s legitimacy.”

Shepherd’s order comes as the latest twist in a protracted dispute over some of the largest contracts in state government. 

The first round of contract awards came under former Gov Matt Bevin in late 2019. The second round came last year after Gov. Andy Beshear tossed out those contracts and ordered them rebid, citing questions about the awards, although the outcome was unchanged.

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