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Cabinet Held in Contempt over Medicaid Dispute

By: Associated Press
Posted: Mon 6:53 PM, Jul 16, 2012

LEXINGTON, Ky. (AP) -- A federal judge is holding a state agency in contempt for failing to transfer Medicaid patients from one company to another.

The Courier-Journal reports U.S. Senior Judge Karl S. Forester said Monday he would consider possible sanctions for the state Cabinet for Health and Family Services later. But he said he will not force the transfers now because an open enrollment period begins Aug. 20, allowing patients to switch on their own.

Forester said the cabinet failed to comply with a May court order allowing transfers from Coventry Cares, which wants to sever its contract with Appalachian Regional Health care.

ARH, which has eight hospitals in eastern Kentucky, has claimed that the cabinet has hindered transfers of 8,400 who want WellCare of Kentucky, which still has a contract with ARH.


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