Louisiana Renews Four Medicaid MCO Contracts Worth $16 Billion
Louisiana's Joint Legislative Committee on the Budget approved renewed Medicaid managed care contracts Thursday with four insurers: Aetna, AmeriHealth Caritas, Humana Health and Louisiana Healthcare Connections, covering roughly 1.2 million of the state's 1.3 million Medicaid enrollees. The deals, ranging from $3.2 billion to $5.8 billion each, bring total managed Medicaid spending to more than $16 billion in calendar year 2027. UnitedHealth and an Elevance Health-Blue Cross Blue Shield of Louisiana joint venture exited the state's Medicaid market this year. Lawmakers pressed state health officials to tie spending to measurable health outcomes, citing Louisiana's last-place national health ranking, and Medicaid director Seth Gold said the state will increase provider accountability and preventive care requirements, including well-baby visits and expanded access to substance-abuse medications. Louisiana Healthcare Connections and Ochsner also reached a network agreement covering 70,000 enrollees just before the vote.