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Bill would limit Kentucky to 3 companies to run the state’s Medicaid program

Frustrated by Medicaid bureaucracy, Sen. Steve Meredith, R-Leitchfield, pushed a bill through the Kentucky Senate on Wednesday to limit the number of outside companies the state can hire to manage its sprawling Medicaid program. Senate Bill 30 comes as the state is seeking bids from outside companies for about $8 billion in state Medicaid business. It would limit the state to no more than three such managed care organizations, or MCOs. The state now has five. SB 30 also comes amid increasing frustration by some lawmakers, including Meredith, a former hospital CEO, about practices of such companies they say are driving up administrative costs for health care providers.