Ohio Medicaid mananged care re-bidding put on hold

A Franklin County judge ruled earlier this week that the new Ohio Medicaid managed care contracts must be put on hold for at least a month (Source: "State’s new Medicaid contracts placed on hold," Columbus Dispatch, June 27, 2012).

The temporary restraining order was requested by Aetna Better Health Inc., one of two companies that were originally awarded preliminary contracts with Medicaid but were later dropped after bids were rescored in response to protests from other managed care companies. Meridian Health Plan also had its preliminary contract dropped and Buckeye Community Health Plan and Molina Healthcare were awarded contracts after the rescoring.

The re-bidding is part of a plan aimed at saving $1.5 billion dollars over the next two years by restructuring Medicaid managed care contracts and moving a larger segment of the state's Medicaid population into managed care plans. Contracts, which are set to take effect on Jan. 1, 2013,  were awarded both times to the top five scorers based on a points system.

Common Pleas Judge Richard S. Sheward  scheduled a hearing for July 23 to decide if the restraining order will be permanent. “It appears from Aetna’s complaint, motion and supporting memorandum that (state officials) have violated Ohio’s procurement laws and Aetna’s due-process rights,” Sheward wrote in a two-page ruling.