Aetna still on thin ice

The Kansas health department says insurance company Aetna is still not living up to the terms of its $1 billion contract with the state’s Medicaid program.

The Wichita Eagle reports that the state has rejected a corrective action plan Aetna submitted in response to a non-compliance letter Kansas sent it last month.

The Kansas Department of Health and Environment released Tuesday Aetna’s proposed plan. The company says it’s addressed several concerns and many others are “well on their way to being brought into compliance” under the contract.

But the state says the company’s plan doesn’t adequately address its concerns. It asked Aetna to submit a new one and plans to negotiate with company officials for a resolution.