Feds say Kentucky must return unused grant money for kynect

Federal officials say Kentucky could have to return more than $57 million in unused grant money because of Republican Gov. Matt Bevin's decision to dismantle kynect.

The federal government gave Kentucky a $289 million federal grant to plan and establish kynect, a health exchange where Kentuckians can purchase private insurance plans with the help of a federal subsidy. State officials have spent all of it except for $57.5 million.

A letter from Acting Administrator Andrew Slavitt of the federal Department of Health and Human Services to Bevin last month says state officials cannot use that money to move the state to the federal exchange. The money would have to be returned.

Bevin spokeswoman Jessica Ditto said state officials would return any unused money.