Tuesday, September 13, 2011

Louisiana Managed Care Initiative Temporarily Halted


A Louisiana judge has issued s temporary restraining order to block the implementation of Medicaid Managed Care for over 800,000 recipients.

The order was granted at the request of Aetna Inc., a company that lost in their bid to serve the population as a managed care carrier. The company is now protesting the state’s selection of Louisiana Healthcare Connections Inc., a subsidiary of Centene; Amerihealth Mercy of Louisiana Inc.; and AmeriGROUP Louisiana Inc.

The Louisiana Department of Health and Hospitals had previously rejected the administrative appeal filed by Aetna and the company chose to move forward with an action in Baton Rouge District Court.

Aetna argues that the state did not follow proper procedures when scoring the bids from potential MCOs.

The temporary restraining order came down just as state officials had started contract negotiations with the winning vendors.

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