LEXINGTON, Ky. (May 6, 2013) – Kentucky Spirit Health Plan today notified state and local government officials and its personnel that the company will permanently lay off all of the approximately 145 employees.
The date of first job loss will be July 5, with subsequent layoffs within six months thereafter. The closure has been planned since last fall, but official notice is required by the Worker Adjustment and Retraining Notification Act of 1988.
Kentucky Spirit has been a partner with the Commonwealth of Kentucky and the Kentucky Cabinet for Health and Family Services (CHFS) providing Medicaid Managed Care services to approximately140,000 children and adults since November 2011.
Significant gaps between data the state provided and the actual cost of providing care to Kentucky’s Medicaid population resulted in unsustainable financial losses for Kentucky Spirit. New Cabinet policies and initiatives further added to its losses. The health plan’s repeated attempts to negotiate a long-term partnership with the state were unsuccessful.
Kentucky Spirit notified the Cabinet on October 17, 2012 that it was terminating its contract effective July 5, 2013, pursuant to its right under the Managed Care Organization (MCO) Contract to terminate at the end of the second year.
“The company carefully analyzed this situation and its available options, and it is with regret that we will permanently lay off 145 employees beginning July 5th with subsequent layoffs within six months,” said Deanne Lane, vice president, media and community affairs for Centene Corporation.
Employees will receive severance benefits and transition programs including outplacement services. In addition, Kentucky Spirit will continue to perform its obligations under the contract and will work diligently with providers, members and the Cabinet to effectively transition the care of members to another plan.