According to state Medicaid Commissioner Lawrence Kissner, WellCare and Kentucky Spirit have been cited by the state Department of Insurance for failing to meet their obligation to the state and the hospitals. A third managed care company, Coventry, has not been cited.
The two companies, notes Musgrave, have submitted plans of correction to the insurance department.
None of the companies testified at Tuesday’s meeting of the Interim Joint Committee on Health and Welfare where Bowen and other Republicans voiced their complaints.
Despite the payment problems, Kisser said the move to managed care has helped stem rising costs. As of October, he said, Medicaid was $40 million under budget.