Kentucky insurance commissioner Brian Maynard filed a lawsuit Saturday in Franklin Circuit Court against the company tapped to process and pay claims for the liquidated Kentucky Health Cooperative, surfkynews.com reported.
Maynard’s suit asserted that CGI Technologies and Solutions, Inc. was grossly negligent in processing and paying claims. The suit also argued that the company breached the contract it had with the health co-op.
"We have a duty to investigate the causes of the Co-op’s collapse and to hold responsible those individuals who caused the collapse," the commissioner said. "This includes recovering funds from responsible parties so that the doctors, nurses, and hospitals that treated Kentuckians insured by the Co-op are fairly compensated for their services. Today’s action is a step toward this goal."
The Kentucky Health Cooperative was created in 2012under provisions of the Affordable Care Act (ACA). In 2015, the co-op was placed in rehabilitation following critical financial losses. After further investigation and determining that it could never recover from its deficit, the co-op was placed into liquidation early this year.
The co-op joins the list of failed co-ops formed under the ACA after just two short years. Of the remaining 11 co-ops still operating, eight are suffering financial setbacks.
