Health and Family Services Cabinet
Cabinet for Health and Family Services, University Health Care Reach Agreement on Passport Contract
Provides Continuity of Care for Medicaid Recipients in Jefferson and Surrounding Counties
The Kentucky Cabinet for Health and Family Services and University Health Care, Inc. (Passport Health Plan) have reached an agreement for Fiscal Year 2011 that will provide continuity of health care services to approximately 160,000 Medicaid recipients in a 16-county area, which includes Jefferson and surrounding counties.
Under the agreement, Passport Health Plan members will continue to have access to 35 hospitals, more than 3,000 physicians and hundreds of ancillary providers, ensuring no disruption in the provision of health care to Passport members.
The one-year agreement will allow the Department for Medicaid Services (DMS) to continue to contract with the Passport Health Plan while also achieving reductions in the projected cost growth of the plan, and allows the Medicaid program to operate with the limited funding appropriated. It also gives Passport the flexibility to manage the health plan’s cost of operations within the total resources (payments from DMS and Passport’s reserves) available to the plan.
“We are extremely pleased we were able to reach an agreement that protects options for our Passport members while also staying within our limited available resources,” said Janie Miller, secretary of the Cabinet for Health and Family Services.
“Passport is a long-standing, valuable partner in our efforts to provide quality health care to Kentucky’s most vulnerable citizens,” said Elizabeth Johnson, DMS commissioner. “During these difficult times, this agreement reflects a true partnership approach in meeting the financial constraints faced by the Medicaid program, while ensuring quality care for our citizens.”
“I very much appreciate the efforts of Governor Beshear and Secretary Miller as we worked together to ensure we continue to meet the needs and improve the lives of the citizens of Kentucky, especially during these harsh economic times,” said James Ramsey, president of the University of Louisville.
Under the agreement, Passport will receive no increase in the weighted average rates for services, but will receive additional funding for new eligible participants who come into the program. Under the new contract, total payments to Passport will increase by approximately $8 million for every 1 percent increase in the number of eligibles. The agreement also will allow for the continuation of Passport’s payments in an estimated amount of $16.9 million to the University of Louisville Hospital Urban Trauma Center, with the U of L Hospital contributing the state share, as proposed in the recently enacted biennial budget.
“My administration has worked with the federal government to arrive at an arrangement that ensures that valuable resources continue to flow to the University of Louisville Hospital Urban Trauma Center to support the life-saving procedures and treatments to trauma victims,” said Governor Steve Beshear.
“Access to health care services and wellness programs offered through Passport is helping to improve the lives of our members,” said Larry N. Cook, M.D., CEO and chairman of the board of University Health Care and executive vice president for health affairs at the University of Louisville. “In addition, the new contract creates a mechanism to fund the urban trauma system at the University of Louisville Hospital that so many people have come to rely upon.”
Approximately 800,000 Kentuckians are enrolled in the Medicaid program, which has a budget of around $6 billion in state and federal dollars.