TOPEKA — The Kansas Department of Administration’s procurement director rejected complaints submitted by Aetna Better Health and CareSource Kansas that alleged misconduct in selection of three managed-care companies to operate the state’s $4 billion Medicaid program.

Separate protests by the unsuccessful bidders were denied, meaning decisions by the Kansas Department of Health and Environment to enter into contracts with Sunflower Health Plan, United Healthcare Community Plan and Healthy Blue could go forward. The immediate outcome was Healthy Blue replaced Aetna Better Health.

Both challenges questioned KDHE’s system of scoring applicants for the KanCare contract. They invited scrutiny of Healthy Blue’s corporate lineage to Amerigroup, which had been dropped from the state’s Medicaid program in 2018. Issues were raised about potential conflicts of interest among personnel linked to Healthy Blue, which is affiliated with Blue Cross and Blue Shield of Kansas. From 2021 to 2024, BCBS Kansas hired a handful of people who had worked in the administration of Democratic Gov. Laura Kelly or the Kansas Legislature.

Todd Herman, director of procurement and contracts in the Department of Administration, informed attorneys representing CareSource and Aetna Better Health that their appeal had been denied. Documents that Herman sent to the two failed bidders were comparable in that both concluded KDHE’s process adhered to Kansas law and the outcome was based on objective evaluation of sealed bids that answered to the state’s 450-page request for proposals.

“The state of Kansas followed the negotiated procurement process permitted by state statute,” he said in the explanatory document sent to Aetna Better Care. “The awarding of a contract to United Healthcare, Sunflower and Healthy Blue … is supported by the facts.”

Kelly not involved

Herman said the burden of proof was on the protesting company to demonstrate the procurement process was fatally flawed, and neither complaint satisfied that requirement.

In terms of the Healthy Blue contract award being tainted by BCBS Kansas’ hiring of four people who previously worked in state government, Herman said movement of staff to the private sector didn’t result in favoritism or conflicts of interest.

“The state’s governmental ethics laws are specific to the individual,” Herman said. “They do not require a state contract to be declared invalid or should not be awarded to a specific vendor due to an individual leaving employment with the state of Kansas and going to work for a vendor who becomes a state contractor.”

Herman said the current governor had no part in the KanCare procurement process. He said neither Kelly nor her staff reviewed the sealed bids. He said it was folly for Aetna Better Health to claim Kelly’s political advocacy for expansion of Medicaid eligibility in some way disadvantaged the company.

The letters sent to Aetna Better Health and CareSource listed shortcomings of proposals made by those companies, which included problems with describing ways to improve services to about 450,000 Kansans enrolled in Medicaid.

Adam Proffitt, secretary of the Department of Administration, told a joint House and Senate Medicaid oversight committee the decisions by Herman would be considered the “final agency action” because no other mechanism existed for an administrative appeal.

‘Arbitrary, capricious’

Jane Brown, president and CEO of Aetna Better Health, said it was the company’s position KDHE deployed an “arbitrary and capricious” process to break its scoring tie with Healthy Blue. She said KDHE unfairly fabricated grading criteria after bids from the seven applicants were submitted. She also said the exit of Aetna Better Health from Kansas Medicaid program would be disruptive to about 100,000 Kansans.

Chad Moore, president of CareSource Kansas, said Healthy Blue should have been disqualified early in the bidding process due to “significant conflict of interest concerns” involving BCBS Kansas.

However, Herman’s written reply to CareSource said arguments put forth by the company to challenge the contract decision were “insufficient to warrant the remedies being sought.”

Herman said the new three-year contracts were in the best interests of the state and the implementation process would proceed ahead of the effective data Jan. 1, 2025.

Companies losing an administrative appeal in Kansas may file lawsuits in an attempt to secure a verdict affirming flaws in the KDHE process. In 2018, Amerigroup challenged its ouster from the KanCare program, which lost its spot to Aetna. Amerigroup failed at the administrative and court levels.

Under Republican Gov. Sam Brownback, Kansas privatized the state’s Medicaid program in 2013. The collection of three contractors was shuffled by Republican Gov. Jeff Colyer five years later. As the Kelly administration prepared to issue new contracts for management of the KanCare program, the GOP-led Legislature forbid her from proceeding. The intent was to see if Republican governor candidate Derek Schmidt could defeat Kelly in November 2022 and enable a Republican governor to again pick KanCare contractors.

FORT LEAVENWORTH, Kan. — Last week, Kansas City welcomed a veteran who was killed in the line of duty during World War Two.

Originally from Detroit, Lieutenant John Mclauchlen was brought to KC ahead of his burial at the Fort Leavenworth National Cemetery. John was missing in action for more than 80 years. Now, he is finally being laid to rest.

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Richard Mclauchlen, John’s nephew, grew up hearing stories about the war hero, Uncle John Mclauchlen.

“My dad used to talk about him and his brother and how they used to go up to the lake in the summertime and have so much fun together,” said Richard Mclauchlen, John’s nephew.

It was January of 1943 when John enlisted in the military.

“They taught him how to be a pilot and to be an officer. He died on December 1 of 1943,” said Richard.

He served just 11 months before a plane crash in Burma killed him and his crewmates.

“They said… last they saw of Uncle John and his bomber was when they dove into a cloud bank. After that no one ever saw anything again,” said Richard.

With more than 80,000 American troops missing in action, the Mclauchlen family had all but given up on bringing john home.

Until Richard and his wife Anita got a call from the military.

“They want to know if they could have a genetic sample,” said Richard.

A genetic sample, a military team working to identify John’s remains, and now, an arrival to Kansas City.

I asked Richard if John’s arrival is like finishing the mission 81 years later.

“For 80 years, he was unknown. Now, he’s going to have a marker with his name on the grave and he’ll be able to say yes, I came home,” said Richard.

After finding out that the Defense POW/MIA Accounting Agency was searching for John, Anita started looking into his life.

“The more I work on him, the more I feel like I know him,” said Anita Mclauchlen. “I feel like I’m just as close as my husband is.”

Uncle John was always important to Richard and Anita, but the couple says this whole experience has shown them that he was important to the military as well.

John arrived in Kansas City on Tuesday in a way Richard and Anita say was fit for a hero.

Kansas City, Missouri, Fire Department

That treatment will continue Monday morning at his burial, where there will be a flyover. Richard says this brings John’s story full circle.

“My uncle john was a very special man. He truly was a hero,” said Richard.

KANSAS CITY, Kansas (July 7, 2024) – FC Dallas (6-11-5, 23 points) suffered a 3-2 defeat to Sporting Kansas City (5-13-5, 20 points) on Sunday night at Children’s Mercy Park. The two clubs will face off once again on Wednesday night for quarterfinal action in the Lamar Hunt U.S. Open Cup.

PLAYING THE KIDS
FC Dallas made six changes from its last MLS match versus the Portland Timbers, the most from one match to another this season. Six players in tonight’s starting XI have previously appeared for North Texas SC. Dallas started two Homegrowns with Nolan Norris and Dante Sealy getting starting nods. Tonight’s starting eleven had an average age of 25.7, the youngest starting lineup in the Peter Luccin era.

GOAL 11 FOR MUSA
Forward Petar Musa netted his 11th goal of the regular season to tie the match at 2-2 in the 64th minute. The goal is Musa’s sixth he’s scored in the last five matches he’s played. Musa is the second Dallas player to score a goal as a substitute this season after Logan Farrington netted a goal on June 19 against Minnesota United FC. Farrington picked up his fourth assist of the year tonight on Musa’s goal.

STEPPING UP
Tonight marked the first time in 2024 that Nkosi Tafari started a match as FC Dallas’ captain.

RECORD AGAINST SPORTING KANSAS CITY
FC Dallas is now 30-29-14 all-time against SKC and 12-17-9 at Kansas City.

FOUR MATCHES IN LESS THAN TWO WEEKS
FC Dallas has a busy run of play ahead with four matches before July 20: three in MLS action (July 13 vs LA Galaxy, July 17 vs Austin FC and July 20 at New England Revolution) and one Lamar Hunt U.S. Open Cup quarterfinal match (July 10 at Sporting Kansas City).

UP NEXT: A DATE WITH THE CUP
FC Dallas takes on Sporting Kansas City in the Lamar Hunt U.S. Open Cup Quarterfinals from Children’s Mercy Park. The match will kick off at 8PM CT. FC Dallas returns to Toyota Stadium on July 13 versus the LA Galaxy for its Christmas in July night presented by Chick-fil-A. The match will kick off at 7:30PM CT.

Both matches will air on MLS Season Pass on Apple TV, the FC Dallas app in Spanish and English, and Talk Radio 1190 AM in English.