Committee disapproves $50M workers’ compensation TPA contract after weeks of scrutiny

The Kentucky Government Contracts Committee voted 5–2 to disapprove contract 167, a $50 million workers’ compensation third‑party administration (TPA) agreement, after extended questioning about pricing, billing and the vendor’s past conduct.

Senator Meredith pressed agency witnesses for specifics about the contract’s composition, saying the $50 million figure “is a little bit misleading” because roughly $48 million is budgeted to pay medical and indemnity claims while only about $1.45 million per year is the administrative cap. Meredith faulted the process and the vendor’s history, saying the Commonwealth and its citizens “have been fleeced” in prior relationships with the company and urged disapproval.

Deputy Personnel Cabinet Secretary Robert Long and other agency officials defended the procurement as competitive and subject to audit. Long said the administrative fee is billed against actual services and that claims payments generally go directly to providers; he added that the vendor’s prior lobbyist was charged and later acquitted in related criminal proceedings and that the vendor settled civil ethics claims without an admission of guilt.

After the roll call, Chairman Douglas announced the vote tally as 5 in favor of disapproval and 2 opposed; he declared the contract disapproved. Committee members said the decision reflects their oversight role; agency staff said finance-cabinet review remains a separate process for some items.

The committee’s formal action stops the contract at this committee stage; transcript discussion indicates the finance cabinet historically has authority to advance some items regardless of committee recommendation.

Next steps: the committee record shows the disapproval was entered on the routine June green list; agencies and the finance cabinet will determine whether and how to proceed.