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Addiction Recovery Care cuts more staff, facilities in response to pay cuts • Kentucky Lantern

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Addiction Recovery Care cuts more staff, facilities in response to pay cuts • Kentucky Lantern

The state’s largest drug and alcohol treatment provider is making more staff and facility cuts as it faces steep cuts in Medicaid payments from the government health plan that covers nearly all of its customers

Attention to the recovery of addictionso Louisa-based ARC said it will temporarily close four programs and cut staff as it plans cuts of 20 percent or more to some of the private insurance companies that process and pay most Medicaid claims from the state

Cuts to ARC programs in Boyd, Jackson, Fleming and Pulaski counties follow ARC’s announcement last month was restructuring some programs and laying off staff after insurance companies, known as managed care organizations, or MCOs, first notified the CRA of pending cuts.

In a statement, ARC said it remains committed to providing substance use treatment throughout Kentucky.

Vanessa Keeton (Kentucky Lantern photo by Matthew Mueller)

“These decisions were not made lightly, and we are dedicated to supporting our team members and the communities affected by these changes,” said Vanessa Keeton, ARC’s vice president of marketing. “Above all, the safety and care of our customers remains our highest priority. We are still available 24/7/365 for patients and families in need.”

The cuts come as MCOs, including Wellcare of Kentucky Inc., announce broader reductions in Medicaid reimbursement to other addiction and behavioral health programs that will limit their ability to provide care, said the Frankfort attorney, Anna Stewart Whites, representing about 20 smaller treatments. suppliers

For example, one of his clients, a children’s therapy program in Richmond, was recently notified of cuts, he said.

“It seems to be very general,” he said.

Wellcare is the largest of the six MCOs that handle Medicaid claims for Kentucky, with about 418,000 enrollees.

He did not immediately respond to a request for comment.

ARC and the FBI

The ARC cuts are the latest setback for the fast-growing for-profit company that won $130 million in state Medicaid funds last year and has expanded from a path to a statewide network of recovery programs and residential centers in 24 Kentucky counties. .

In July, the FBI announced that it did investigating ARC for possible health care fraud and ask anyone with information to contact the federal agency. The ARC said it is maintaining its services and is cooperating with the investigation.

The Kentucky lawyer came out of alcoholism and started a recovery boom

ARC and its founder and CEO Tim Robinson have emerged as prolific political donors in recent years.

A Analysis of the flashlight by Tom Loftus showed that Robinson, his corporations and his employees have made at least $570,000 in contributions to Kentucky political causes and candidates over the past decade as his company grew from an average house to about 1,800 residential beds and ambulatory care for hundreds of other clients.

ARC said it has provided treatment to 75,000 people over the past 15 years.

“Bring back addiction treatment?”

MCOs contract with the state to manage most of its $1.5 billion annual Medicaid program and have wide latitude to set fees with providers. They are paid a flat fee per member and reimburse providers for care.

In July, ARC was among the suppliers who declared before a legislative committee, warning that the MCO’s cuts in payments for addiction treatment could hinder the progress Kentucky has made in treating decades of widespread addiction and overdose deaths.

The expansion of treatment services was prompted by the 2014 expansion of Medicaid payments for substance use disorder under the Affordable Care Act.

“Kentucky has made significant strides in access to treatment,” Matt Brown, chief administrative officer of Attention to the recovery of addictionsor ARC, he told the Interim Health Services Committee. “With these cuts, it could completely set back addiction treatment in our state by 20 years.”

Last month, Prestonsburg-based Frontier Behavioral Health claim filed against Wellcare for 20% fee cuts and a new requirement that it review all services before agreeing to pay for them. That lawsuit is pending.

Her lawsuit said that when Frontier tried to follow up with Wellcare about an August letter notifying her of the cuts, the number provided in the letter for questions was disconnected.

MasterPiece is a cafe opened in Louisa by ARC where customers can purchase art and baked goods. June 27, 2024. (Kentucky Lantern photo by Matthew Mueller)

‘Booting’ clients

Whites said some providers he represents have had similar experiences, or worse.

When some providers tried to contact Wellcare about the rate cuts, it responded by canceling their contract entirely.

This forced clients mid-treatment to find another provider or switch to another MCO, resulting in delays in care. Some providers have continued to offer treatment without reimbursement until customers can make the necessary changes, he said.

“The risk of uprooting someone from your program and finding someone who can take them is too much of a risk,” Whites said.

ARC’s Brown did not immediately identify how many employees will be affected by the cuts announced Wednesday. Before the staff cuts last month, it employed 1,350 people.

The programs that will be temporarily closed are: Sanibel House in Bloyd County; Beth’s Blessings to Jackson County; Belle Grove Springs in Fleming County and Lake Hills Oasis in Pulaski County.

Brown said clients will be offered placement in other ARC programs or the option to switch to a different provider to continue treatment.

In the meantime, he said the CRA is continuing to negotiate on pending rate cuts.

“We are very excited that these negotiations will take place soon,” he said.

He said lawmakers, state officials and providers are working “to create a solution that preserves access to treatment and long-term recovery.”

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