Kentucky Joins Lawsuit Alleging Fraud by Prison Health Care Provider

FRANKFORT, KY — Several Kentucky state agencies have joined a lawsuit accusing the state’s prison health care provider, Wellpath, of fraudulent insurance practices. The Finance and Administration Cabinet, Justice and Public Safety Cabinet, and the Department of Corrections filed a motion asking a judge to add additional defendants, including insurance companies and brokers, to the suit.

The original lawsuit was filed in October 2025 by Britney Jones, whose brother died while in Wellpath’s care at the Eastern Kentucky Correctional Complex. Jones alleges that Wellpath misrepresented its insurance coverage, leaving the state and victims unable to collect settlements. Her claims include medical negligence and wrongful death, while the state now seeks to determine whether Wellpath’s insurance certificates were valid or “sham” coverage.

“This case questions whether Kentucky contractors can be held accountable instead of profiting off taxpayers while failing to provide proper coverage,” said Jones’ attorney, Greg Belzley.

According to court filings, Wellpath — formerly Correct Care Solutions — assured the state it maintained third-party insurance to cover claims. However, during bankruptcy proceedings, Wellpath’s insurance director admitted the policies were “fronting policies” that imposed no real liability on third parties and were primarily used to secure contracts.

The state’s motion asks the court to “pierce the corporate veil” to evaluate whether Wellpath restructured through bankruptcy to avoid responsibility while continuing to profit from state prison contracts. Wellpath remains the health care provider for all 14 Kentucky state prisons, and the state paid $72 million to the company for the current fiscal year.

A hearing on the motion to add new defendants, including New Wellpath LLC, Wellpath Holdings, ProAssurance Specialty Insurance Company, and Zurich American, is scheduled for March 25, 2026.

This lawsuit is one of multiple legal challenges against Wellpath nationwide. As of October 2025, the company faced 571 pending lawsuits across the U.S., including 22 in Kentucky, raising questions about its ability to meet obligations to inmates and the state.

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