Appeals Court Hears Kentucky Medicaid Dispute

Jan 17, 2013

A federal appeals court is hearing arguments Thursday from Coventry Cares over a ruling requiring continuation of its contract with Appalachian Regional Healthcare so Medicaid patients in eastern Kentucky would have time to decide whether to change their managed care organization.

The U.S. 6th Circuit Court of Appeals hearing is being held in Cincinnati.

A federal judge in Lexington ruled last summer that Coventry was required to continue its contract with ARH through Nov. 1. About 25,000 eastern Kentucky Medicaid patients were affected by the ruling.

Coventry planned to sever its contract with ARH on last May 4, but the hospital chain filed the lawsuit seeking to prevent the termination, and negotiations to extend the contract between Coventry and ARH stalled.