Nonprofit Sues Kentucky Over Medicaid Reimbursement Rates

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LOUISVILLE, Ky. (AP) — Passport Health Plan has filed a lawsuit alleging that Kentucky’s cuts to Medicaid reimbursement rates will result in the nonprofit going out of business by March.

According to the lawsuit filed on Friday, the Louisville-based organization is asking a judge to bar the state from imposing the cuts and repay millions of dollars in cuts for the past eight months. The suit names Gov. Matt Bevin’s Cabinet for Health and Family Services as the defendant.

Passport Health Plan provides managed care for most of Kentucky’s 1.3 million Medicaid enrollees.

Cabinet spokesman Doug Hogan says the state is reviewing the lawsuit, but added that the complaint came as a surprise because Passport has not identified “legitimate issues” with the state’s rates.