Court Refuses Injunction Against Louisiana State Health Insurance Contracts

The Insurance Journal is reporting that a Baton Rouge Judge has refused to issue an injunction to stop the State of Louisiana from entering into contracts with three private insurance companies to provide healthcare management services for Medicaid recipients, but a different judge has ordered that the proposals submitted by the companies bidding on the project must be made public.

Approximately 800,000 Louisiana Medicaid recipients would have their healthcare managed under the contracts.
The state contracts farm out the management of healthcare services for approximately 800,000 Medicaid recipients to the private companies. Aetna Better Health, Inc., filed a lawsuit against the state, alleging that there were errors in the state procurement process by which the contracts were bid. Aetna sought an injunction to block the execution of the contracts with the private companies, arguing that it would be irreparably harmed by the action.

Aetna, Coventry Health Care of Louisiana, AmeriGroup Louisiana, Inc., AmeriHealth Mercy of Louisiana, Inc., and Louisiana Healthcare Connections all submitted proposals for the various state contracts in the bid process and were all awarded contracts. Aetna and Coventry, however, were not chosen to participate with the other three private companies in one certain contract dealing with coordinated-care networks ("CCNs").

The Insurance Journal indicates that $2.2 billion of the state's $6.7 billion Medicaid program goes to CCNs.

A different court has found that, despite the objections of the private companies, the winning proposals must be made public. According to the Insurance Journal article:
In the related public records suit, Hernandez held a hearing last month and ruled Tuesday that the information does not fall within the exceptions contained in the Louisiana Public Records Act or state Constitution.
After the decision, the Jindal administration has indicated it plans to move forward with the state contracts and intends to start the new program early next year.

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