KENTUCKY NEWS

Sen. Ray Jones has asked Attorney General Greg Stumbo to look into the bidding procedure used to award state health insurance contracts and the role of a former insurance company CEO in the process.

Mark Birdwhistell, former head of insurance company CHA Health, is the state's undersecretary for health. Officials in Gov. Ernie Fletcher's administration insist that Birdwhistell did not negotiate with insurance carriers on the state's behalf.

Fletcher, however, has said that the administration did tap Birdwhistell's expertise in the insurance industry during those negotiations.

Jones, D-Pikeville, sent a letter Monday to Stumbo, a Democrat, requesting the inquiry. Vicki Glass, a spokeswoman for the attorney general, said Jones' request is being considered.

James Holsinger, secretary of the Health and Family Services Cabinet, said the administration asked Birdwhistell to review the proposed health insurance system in April, just before the plan was sent out to insurance companies for bidding.

Holsinger said Birdwhistell was involved in "working out any improvements" in the plan, but would not specify how.

Birdwhistell and Holsinger are both paid through a contract with the University of Kentucky and will earn $182,894.04 and $240,000 respectively in the current fiscal year.

CHA Health, where Birdwhistell was the chief executive officer until January, is 84 percent owned by the university, Holsinger said.

Holsinger, who oversaw CHA's venture while he served as UK's Chandler Medical Center chancellor, said Birdwhistell does not have any personal ownership stake in CHA.

Jones made public his request for an investigation just a day after Democratic Rep. Charles Geveden of Wickliffe, announced that the state government committee also would investigate Birdwhistell.

Jones, who is in a re-election fight with Republican Chris Ratliff, questioned why the administration carved up the state into eight sections with only one carrier available per region.

"The employees are going to be left with absolutely no choice," he said.

Personnel Secretary Bob Ramsey said that was done because in a competition model, some companies were "cherry picking" healthy state employees and leaving other carriers with the higher-risk customers.

Fletcher has insisted that the administration conducted tough negotiations and saved the state at least $10 million from initial estimates.

"We made sure we got the absolute most out of the dollars," he said in a brief interview last week.

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Information from: Lexington Herald-Leader, http://www.kentucky.com