Kansas awards Medicaid contracts to 3 companies

TOPEKA, Kan. (AP) — Kansas has awarded contracts to manage its Medicaid program to subsidiaries of three out-of-state health insurance companies.

The contracts announced Wednesday by Gov. Sam Brownback's administration are key to the conservative Republican's efforts to overhaul the $2.9 billion-a-year program that provides health coverage to the poor, disabled and elderly.

The contracts were awarded to Amerigroup Kansas Inc., United Healthcare of the Midwest Inc., and Sunflower State Health Plan. They take effect in January.

Sunflower is a subsidiary of St. Louis-based Centene Corp. The Amerigroup Corp. parent is based in Virginia and United Healthcare's headquarters is in Minnesota.

Brownback's administration has said moving all Medicaid participants into managed care will improve services while cutting costs. It now projects cost savings of more than $1 billion over five years.