The Richmond Register

Local News

December 11, 2012

State lawmakers grill Medicaid commissioner over late payments

FRANKFORT — It was almost a tale with two versions.

Kentucky’s Commissioner of Medicaid Services, Lawrence Kissner, seemed pleased to tell the Interim Joint Committee on Health and Welfare how well the state’s move to managed care for most Medicaid patients is progressing.

But Committee Chair Sen. Julie Denton, R-Louisville, and some other lawmakers wanted Kissner to explain why the managed care organizations are so slow in paying providers, especially hospitals who the lawmakers say suffer from long overdue bills to the MCOs.

“The reality is the providers aren’t getting paid,” Sen. Joe Bowen, R-Owensboro, told Kissner. “Their accounts payable are mounting and it’s creating a hardship for all of them, large and small.”

Hospitals and other providers, including local health departments, have complained for months that Kentucky Spirit, Coventry Cares and Wellcare, the three companies serving Medicaid patients outside the Louisville area, are slow to reimburse for services or frequently disallow services.

(Kentucky Spirit has said it will leave Kentucky because it has found serving its members is more expensive than data provided by the state indicated when it contracted to perform services. Kissner said Tuesday the MCO has not yet left, and he anticipates litigation involving the company.)

Kissner told the committee that the state Department of Insurance has found two of the three – Kentucky Spirit and Wellcare – have indeed been slow to make payments and ordered the two to adopt corrective action plans.

Kissner said the cabinet is “actively facilitating meetings (between MCOs and providers) and we have mediated on their behalf.”

Rep. John Will Stacy, D-West Liberty, who owns two pharmacies and who has been critical of the MCOs, said he believes “a correction action plan would be to send (providers) a check.”

“They can’t go for months without being paid or you’re not going to have any providers,” Stacy told Kissner.

The commissioner said the cabinet evaluates the adequacy of coverage for Medicaid patients in each region on a monthly basis.

Denton then asked Kissner what the cabinet intends to do to ensure MCO’s pay reimbursements promptly and to address hospitals’ cost problems when federal law requires them to treat anyone who shows at emergency rooms but whose health problems the MCOs frequently deny as non-emergency.

“Is there a particular reason that you are letting them get away with murder?” Denton asked.

Kissner said the cabinet is following the procedures set forth in statute, that it follows the timelines established by law. He conceded that timeline can take months.

Before the grilling began over late payments, Kissner painted a generally favorable picture of the implementation of managed care which is supposed to save the state about $1.3 billion in Medicaid costs.

“We are on track and under budget,” through five months of the fiscal year, Kissner said. He said he cannot predict the impact the potential departure of Kentucky Spirit on that budget and hinting the state may attempt to hold the company to its contract.

“I think it’s going to become a significant legal issue,” Kissner explained. “They haven’t left yet.”

Kissner showed the committee charts showing the costs for prescription drugs and the number of emergency room admissions have declined since managed care was implemented. The number of patients who show up at emergency rooms multiple times during one month has also declined.

He said he sees no significant problems with implementation of competitive managed care for the Region 3 Louisville area.

That 15-county region was previously served exclusively by Passport for years, but the federal government last year required other MCOs be allowed to compete for contracts in the region.

In addition to Passport three other MCOs – Coventry, Wellcare and Humana – successfully bid to serve the region. Kissner said Coventry, Wellcare and Humana each will get just less than 19 percent of the clients while Passport will serve about 44 percent.

Ronnie Ellis writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.

1
Text Only
Local News
  • Berea utility doubles solar farm, again

    Berea Municipal Utilities started its solar farm in October 2011 with 60 panels. In less that five days, all were leased.
    Another 60, which became operational in June 2012, were leased in less than four months.
    Now, the farm again has doubled, with the addition of 126 panels that are ready for leasing, said Steve Boyce, a retired Berea College professor who has been involved with the program since its inception.

    July 30, 2014

  • Miss Madison Winners 2.jpg My fair ladies

      

    July 29, 2014 5 Photos

  • 10th Quilt Extravaganza is Friday, Saturday

    Displays of quilts by men, baby quilts, the Grandmother’s Flower Garden pattern, an exhibit of feed sack fabric, ongoing demonstrations, and a vendors market are features of the 10th Berea Quilt Extravaganza Friday and Saturday at Berea Community School off Ellipse Street.

    July 29, 2014

  • 7-30 Samantha Frederick.jpg RPD: Heroin sales lead to trafficking indictment

    Executing a warrant issued after Samantha Frederick, 29, Northgate Drive, was indicted July 16 by a Madison County grand jury, Richmond Police arrested her Monday on drug trafficking charges.

    July 29, 2014 1 Photo

  • 7-29 YMCA-Schools.jpg YMCA, county district to provide after-school care

    The Telford YMCA is partnering with the Madison County School District to provide after-school child care for kindergarten and elementary students.
    YMCA Executive Director Dave Wallace and Madison County School Superintendent Elmer Thomas announced the partnership Monday afternoon.

    July 29, 2014 1 Photo

  • 7-29 Lucille May 1.jpg Memories bloom in May’s garden

    After realizing a story was being written about 96-year-old Lucille May, tenants of Willis Manor gathered in the lobby to share stories about her.
    Affectionately called “Mamaw” by other residents and workers at the apartment building, May has spent the four years of her residence transforming an outdoor garden that was overtaken by weeds. It’s now a thriving flowerbed, complete with interesting rocks, decorations and conversation.

    July 29, 2014 4 Photos

  • 7-29 Construction 1.jpg Water Street storm-water digging begins

    Caisson holes were drilled and then filled with concrete and steel poles Monday to create a retaining structure to shore up the Allstate Insurance building foundations' firm when excavation for the Water Street Stormwater Improvement Project begins.
    Digging for 20 ton, 6 by 7 foot concrete box culverts will begin today, if weather permits, said Jason Hart, Richmond’s director of Planning and Zoning. The culverts will help reduce the likelihood of flooding on Water Street by carrying storm water under Main Street, the CVS parking lot and Irvine Street to a stream, he said.

    July 28, 2014 4 Photos

  • 7-29 Robert Abney.jpg RPD: Bottle bomb injures man, damages neighbor’s home

    Richmond Police on Friday charged Robert Abney, 30, of Moberly Avenue, in connection with a May 30 explosion that injured Abney and damaged a neighbor’s home.
    Officers were dispatched May 30 to a residence in the 500 block of Moberly Avenue to investigate the report of an explosion.
    They found the remains of a plastic bottle bomb near a residence adjoining Moberly’s, according to an RPD news release. A wall of the occupied home was smoldering and grass was burned in the area, it added.

    July 28, 2014 4 Photos

  • 7-29 Steven Coffey.jpg Two led police on I-75 chase from Berea

    Berea Police found a man passed out and intoxicated inside his crashed vehicle on Interstate 75 Wednesday, according to a police report.
    Steven Coffey, 34, of Berea, had slurred speech and was unsteady on his feet when officers arrived at the vehicle, the police report stated. They determined he was under the influence of drugs, the report stated.

    July 28, 2014 2 Photos

  • 7-27 HeartChase 1.jpg A race to the finish line

    Sheltered by overcast sky and supported by a cool breeze, teams competed Saturday morning in the second annual HeartChase at Richmond Centre.

    July 26, 2014 6 Photos

AP Video
Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN Raw: Deadly Landslide Hits Indian Village Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways Raw: Thousands Flocking to German Crop Circle At Least 20 Chikungunya Cases in New Jersey Raw: Obama Eats Ribs in Kansas City In Virginia, the Rise of a New Space Coast Raw: Otters Enjoy Water Slides at Japan Zoo NCAA Settles Head-injury Suit, Will Change Rules Raw: Amphibious Landing Practice in Hawaii Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

Should Madison County’s three local governing bodies ban smoking in indoor public places?

Yes
No
     View Results