FRANKFORT, KY – Humana has been awarded the contract to administer the Kentucky Public Pension Authority (KPPA)’s Medicare Advantage Plans. Humana has been KPPA’s Medicare administrator since 2013, and the new three-year agreement ensures continuity in plan administration. Retirees can expect the same level of service they have had in the past.
The Kentucky Finance and Administration Cabinet awarded the contract following a review of proposals from Humana and two other vendors as part of a request for proposals (RFP). The new contract covers three plan years beginning January 1, 2023 and going through December 31, 2025. It includes four additional one-year renewal options that could extend the contract through 2029.
“Humana has continued to be an excellent partner in assisting retirees in achieving an overall improved well-being and in working with KPPA to keep premiums stabilized since 2017,” said David Eager, KPPA Executive Director.
Per the terms of the contract, Humana will administer KPPA’s Medicare-eligible options, including the Medicare Advantage Preferred Provider Organization (PPO) plans to state and local government and State Police retirees. Prior to KPPA’s partnership with Humana nine years ago, the Systems managed a self-insured program. The Systems then opted to explore a third-party relationship in an effort to increase efficiencies.
Retirees in the County Employees Retirement System (CERS), Kentucky Employees Retirement System (KERS), and the State Police Retirement System (SPRS) have embraced various wellness programs offered through Humana and are living longer, healthier lives. This has helped the Systems recoup more than $68 million in refunds from lower-than-anticipated healthcare costs.
For more information about state procurement rules and procedures, click here.
# # #
The Kentucky Public Pensions Authority is responsible for the investment of funds and administration of pension and health insurance benefits for over 410,000 active and retired state and local government employees, state police officers, and nonteaching staff of local school boards and regional universities.
Visit our website at
https://kyret.ky.gov