Medicaid provider files lawsuit against Kentucky

FRANKFORT, Ky. -- A Medicaid managed care provider has filed a lawsuit against Kentucky, alleging that state officials provided incorrect information that led to $120 million in losses in the first 11 months of its contract.

Kentucky Spirit Health Plan, a subsidiary of St. Louis-based Centene Corp., filed the lawsuit Monday in Franklin County Circuit Court.

The Medicaid provider had announced last week that it would exercise its right to end the contract effective July 5, 2013.

Kentucky Spirit said it is committed to helping the 140,000 clients it serves transfer to one of Kentucky's three other Medicaid contractors.

Health and Family Services Secretary Audrey Tayse Haynes told lawmakers last week that the state intends to hold Kentucky Spirit accountable for its own financial losses caused by terminating the contract.