LOUISVILLE, Ky. (WDRB) -- Passport Health Plan, the nonprofit that manages Medicaid coverage for about 315,000 people in the Louisville area, sued Gov. Matt Bevin's health cabinet Friday over rate cuts that Passport claims will put it out of business.
In the lawsuit filed in Franklin Circuit Court, Passport said the state Cabinet for Health & Family Services had "knowing indifference" to the fact that the rate cuts would jeopardize its future.
The state health cabinet on Friday repeated what it's said in recent weeks: that the rate reductions were based on actuarial data that Passport cannot refute.
"We are currently reviewing the lawsuit but we were certainly surprised to receive it given that we had extensive meetings with their actuaries and they were unable to identify any legitimate issues with the soundness of our rates," cabinet spokesman Doug Hogan said.
In its own statement, Passport said state government is treating Louisville unfairly.
"The state’s decision to specifically target the Louisville region for a dramatic rate reduction—while increasing rates in the rest of Kentucky—has had a devastating impact on our ability to serve our members and reimburse our provider partners," Passport spokesman Ben Adkins said. "Simply treating the Louisville region like the rest of Kentucky would protect 700 jobs and ensure Passport Health Plan can continue to serve the Commonwealth.”