Court rules Kentucky Spirit must pay the state damages



This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

FRANKFORT, Ky. (AP) — The Kentucky Court of Appeals says a company that once managed 125,000 Medicaid recipients must pay the state damages for leaving the contract early.

Kentucky Spirit was one of three companies that initially handled the state's Medicaid claims when it switched to a managed care model in 2011. But the company decided to terminate the contract after one year. State health officials said the company could not leave before three years without paying a significant penalty.

Kentucky Spirit sued, and in 2013 a circuit court judge sided with the state. The company appealed that decision, but the Court of Appeals again sided with the state in a ruling Friday. The company could appeal to the Kentucky Supreme Court.

State officials said they do not know how much money the company would have to pay.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast