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APPALACHIAN REGIONAL HEALTHCARE v. COVENTRY HEALTH

Nos. 12-5779, 12-5785.

714 F.3d 424 (2013)

APPALACHIAN REGIONAL HEALTHCARE, INC. and ARH Mary Breckinridge Health Services, Inc., Plaintiffs-Appellees, v. COVENTRY HEALTH AND LIFE INSURANCE COMPANY (12-5779); Commonwealth of Kentucky, Cabinet for Health and Family Services and Audrey Haynes, sued as, "Secretary, Cabinet for Health and Family Services" (12-5785), Defendants-Appellants.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: April 24, 2013.

Attorney(s) appearing for the Case

ARGUED: Amy D. Cubbage , McBrayer, McGinnis, Leslie & Kirkland, PLLC, Lexington, Kentucky, for Appellant in 12-5779. Christina M. Heavrin , Cabinet for Health and Family Services, Frankfort, Kentucky, for Appellants in 12-5785. Stephen R. Price, Sr. , Wyatt, Tarrant & Combs, Louisville, Kentucky, for Appellees. ON BRIEF: Amy D. Cubbage , Stephen G. Amato , Jason S. Morgan , McBrayer, McGinnis, Leslie & Kirkland, PLLC, Lexington, Kentucky, for Appellant in 12-5779. David Brent Irvin , Cabinet for Health and Family Services, Frankfort, Kentucky, for Appellants in 12-5785. Stephen R. Price, Sr. , Carole D. Christian , John W. Woodard, Jr. , Allison Brown Vermilion , Wyatt, Tarrant & Combs, Louisville, Kentucky, for Appellees.

Before: SILER, GRIFFIN, and STRANCH, Circuit Judges.

OPINION

JANE B. STRANCH, Circuit Judge.

This appeal arises from Kentucky's transition to the managed-care model of service delivery for its Medicaid program, through which more than half-a-million indigent residents receive healthcare coverage. Kentucky awarded Coventry Health and Life Insurance Company, a managed-care organization, a contract to administer Medicaid services in southeastern Kentucky. Coventry, in turn, entered into a temporary agreement...

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