Coventry Health disclosed in a regulatory filing that on February 7, Coventry Health and Life Insurance Company, a subsidiary of Coventry Health Care, and the Commonwealth of Kentucky agreed to an amendment to the company’s Kentucky Medicaid contract that addresses the impact on Coventry of program changes subsequent to the effective date of the contract, specifically the smoking cessation program and outpatient reimbursements and concerns Coventry had raised over risk adjustment implementation. The amendment, among other things, increased existing rates for each of the contract years remaining under the initial term of the contract by 7%, effective January 1. In addition, the Commonwealth agreed to accelerate the effective date for the scheduled rate increase for the last year of the contract’s initial term from October 1 to July 1. Subject to certain conditions, the Commonwealth also agreed to offer the company the opportunity for contract renewal at rates no less than those in place at the end of the existing term. The parties also agreed to certain operational changes for improved member services and provider relations.