Senate OKs bill to limit companies running Medicaid program

FRANKFORT, Ky. – The Kentucky Senate has passed a bill to limit to three the number of managed care organizations hired by the state to run its massive Medicaid program. The bill cleared the Senate on a 29-7 vote Wednesday. It heads to the House. The state now has five managed care organizations handling most of the state’s $11-billion-per-year Medicaid program. The bill reflects widespread frustrations with those companies. Detractors say they cause higher administrative costs for health care providers. The bill is moving through the legislature at a time the state is seeking bids from outside companies for about $8 billion in Medicaid business.