Evolent Health (EVH -33.6%) resumes trading after a circuit breaker halt following news that Passport Health, which the company plans to buy, lost out on a Kentucky Medicaid contract.
The state has notified five other health insurance companies that they will be awarded contracts to manage $8B/year in Kentucky’s managed Medicaid business, the Louisville Courier Journal reports, effectively cutting Passport out of work it has maintained for more than 20 years.
The loss could put Passport out of business, according to the report, because its main revenue comes from managing health care for Kentucky Medicaid enrollees, a population it was founded to serve in 1997 as a non-profit.
Anthem (ANTM +1.1%), which previously held a state contract for Medicaid managed care, also was an unsuccessful bidder but the company is much larger and more diversified than Passport.
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