Louisiana Health Department Proposes New Medicaid Contracts Amid Insurer Exits

The Louisiana Department of Health has proposed new, larger contract extensions for four health insurance companies that will remain part of the Medicaid program. These companies are Aetna Better Health, AmeriHealth Caritas, Humana Health Horizons, and Louisiana Healthcare Connections. The proposal follows the abrupt exit of two private companies, including UnitedHealthcare, which left the program at the end of March due to a legal dispute.

The four remaining companies are set to collectively receive $16.1 billion from Louisiana in 2027, contingent on state lawmakers approving the agreements. The individual contracts range from $3.2 billion to $5.8 billion per year each, covering a large portion of the state's 1.3 million overall Medicaid enrollees.