Audit Finds Flaws in Kynect, Rates it 'Generally Effective'

Oct 16, 2015

Federal auditors say Kentucky officials had trouble making sure everyone purchasing discounted health insurance plans on Kynect met all of the federal requirements.

An audit from the Department of Health and Human Services Office of Inspector General said Kentucky's health insurance exchange was generally effective in determining a person's eligibility. But officials did not always properly verify some applicants' identity or their eligibility for minimum essential coverage.

The findings do not mean state officials allowed ineligible people to purchase qualified health plans because the state had other methods of catching the problems.

Kentucky officials agreed with the auditor's findings and said they had fixed the problems. The system could have an influx of new shoppers as Kynect's largest insurer, the Kentucky Health Cooperative, announced last week it was going out of business.

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