Changes in Medicaid Contracts in Louisiana
BATON ROUGE – The health insurance contracts for over 330,000 Louisiana residents who depend on Medicaid services are expected to change come February. This follows a 90-day contract extension.
United Healthcare is one of six Medicaid insurance providers in the state, but some lawmakers are raising concerns regarding this shift, especially since the contract was supposed to end in December. Currently, it’s set to conclude in February, according to reports.
Lawmakers have expressed worries that ending United’s contract right before the year closes could leave beneficiaries in a bind, seeking alternative providers.
About a month ago, Louisiana lawmakers suggested signing an agreement to expand Medicaid coverage with a private company, but the governor’s office announced the deal would not proceed just a day later.
Attorney General Liz Murrill’s office stated that the Louisiana Department of Health, responsible for signing the contract, wasn’t informed of any issues concerning United Healthcare.
Murrill noted, “I think it was just an inadvertent lack of communication. It’s not insidious. They were doing one thing and I was doing another.”
Back in 2022, former Attorney General Jeff Landry filed a lawsuit against United Healthcare and its pharmacy benefits manager for alleged prescription drug overcharging. This legal action has continued even after Murrill took over as attorney general. She informed the Senate Health Insurance Committee that United has not been compliant and has not provided the requested documents.
Nevertheless, some senators have raised alarms about the tight timeline and what the termination of United Healthcare’s contract might mean for Medicaid recipients moving into the new year.
In several instances, family members might end up with different coverage from various providers, according to the Louisiana Department of Health. Aiming for a smoother transition, the state is looking to allow families to opt for a unified insurance plan if they prefer.
To tackle the limited time frame, lawmakers proposed extending coverage by 90 days and reallocating Medicaid recipients’ health plans to other insurers.
“Healthcare is very complex, so we need to make sure that the Department of Health and this administration are given more time to do what they need to do to avoid coverage disparities,” stated State Sen. Patrick McMath.
According to the Louisiana Department of Health, Medicaid recipients will have various opportunities to switch their health plans if they are unhappy with their coverage come the new year.
