Evolent rallies after new Kentucky Governor cancels state Medicaid contracts

Kentucky Governor Andy Beshear announced yesterday that he is canceling and rebidding the state’s Medicaid managed care contracts after ending the prior administration’s Medicaid waiver last week. “Given the way the previous administration handled this process and lasting public concerns, the only option I had was to cancel the contracts and rebid. Moving forward we must ensure a fair and transparent process and meet every Kentuckians’ health care needs,” Beshear said in statement. The previous administration awarded nearly $8 billion in contracts to five providers with just 11 days left in office, he pointed out. A request for proposal will be issued with a target date of Jan. 10 or earlier. “Through a competitively bid process the administration has a goal of selecting providers in the spring,” Beshear added. Shares of Evolent Health (EVH) closed yesterday up 7%, or 50c, to $8.06 following the news. Passport Health, Evolent’s largest client, was not initially selected as one of five managed care organizations awarded contracts for Kentucky’s Medicaid program.