Kansas threatens termination of Aetna's Medicaid contract

Kansas officials have notified Aetna that its Medicaid contract is in danger of being terminated for failing on the agreement, according to public radio station KCUR.

The notification came via a formal letter from the state to Aetna cited by the station.

The letter states that Aetna must provide information by Aug. 7 on how it is dealing with such problems as complaints of delayed payments to hospitals. State officials told the insurance company that if the problems weren't resolved, Kansas "may seek any and all remedies available under the contract."

Hospital and physician office staff allege Aetna sometimes does not provide any reimbursement, or proper reimbursement, and that it's difficult to reach the right people at the company to correct errors, according to KCUR. They also allege Aetna lacks a complete and accessible directory of covered physicians and specialists.

Aetna told the committee that monitors the privatized Medicaid system in Kansas that the insurer had resolved some issues and was close to resolving others, the radio station reported.

The insurer also apologized for the frustrations expressed by the hospitals and physician offices.

Aetna reportedly serves about 100,000 Medicaid beneficiaries in Kansas.

Read the full WCUR report here


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