Aetna lawsuit over Ohio Medicaid contracts dismissed by judge

Franklin County Common Pleas Court Judge Richard S. Sheward dismissed a lawsuit this week challenging the Medicaid managed care contracts awarded earlier this year to five health plans (Source: "Judge dismisses Aetna's lawsuit challenging state contracts for Medicaid program," Columbus Dispatch, Aug. 16, 2012).

The lawsuit filed by Aetna Better Health Inc. against the Ohio Department of Job and Family Services claimed that state regulators violated state procurement laws by changing bid specifications after receiving protests from two unsuccessful bidders.

“I did not find that the state abused its discretion at all,” Sheward said after dismissing the case. “Quite the contrary, I think Aetna came up with a new interpretation as to what full risk is and I definitely did not accept that."

The Medicaid managed care rebidding is part of a plan by the state to save $1.5 billion over the next two years through a series of changes to the program, including moving about two-thirds  of Medicaid enrollees into managed care plans. The contracts awarded to five health plans represents about $7 billion in business per year.