A judge in Baton Rouge, Louisiana has repudiated to block the state from signing contracts with three private insurance companies chosen to take part in Louisiana’s new health-care system for the poor. Louisiana Healthcare Connections Inc., AmeriHealth Mercy of Louisiana Inc., and AmeriGroup Louisiana Inc. got chosen to participate in Louisiana’s new poor-health-care delivery system. In a separate action, a different judge ordered that the companies’ proposals to the state be made public.
According to the Advocate, William Morvant a judge for section 3, Division E of the Louisiana 19th Judicial District Court. for rejected arguments from an attorney for Aetna Better Health Inc. which lost some business that Aetna will be irreparably harmed if the state is allowed to move forward with the three winning proposals.
These corporations filed separate lawsuits against the Department of Health and Hospitals (DHH), alleging that the proposals have trade secrets and proprietary information. Chief attorney Steve Russo has represented DHH, who stated afterward that the contracts could be signed soon, and the Jindal administration will implement the scheme.
According to Russo, Morvant’s decision from the bench is a triumph for the approximately 800,000 Medicaid participants in Louisiana who will have their health care managed under the contracts. He believes that access will improve and recognize in no time.
The Controversy about Medicaid contracts
Aetna spokesman Matt Wiggin released a statement in which the company said it is evaluating its options and will decide shortly on how to proceed and they were displeased by the decision and continue to have issues about how Medicaid contracts got awarded. Aetna claims the awards should be thrown out because DHH did not use the proper procedure to solicit proposals.
Hernandez convened a hearing in the related public records action and found on Tuesday’s website that the information does not come within the exceptions outlined in the Louisiana Public Records Act or the state Constitution.
Judge Hernandez
Attorneys representing Louisiana Healthcare Connections, AmeriGroup, and United Healthcare intend to petition Hernandez for a suspensive appeal, which, if allowed, would put Hernandez’s decision on hold. At the same time, the firms seek review from a higher court.
Later, the Jindal government selected five businesses to participate in the privatization of Medicaid service delivery. Louisiana Healthcare Connections, AmeriHealth Mercy and AmeriGroup Louisiana beat out Aetna and Coventry Health Care of Louisiana for one type of network plan called coordinated-care networks, or CCNs.
Aetna then filed an appeal with state Commissioner of Administration Paul Rainwater, which got rejected as well. While the second appeal was underway, Aetna filed a petition for a temporary restraining order, preliminary injunction, and permanent injunction in the 19th Judicial District on September 1, 2011. State District Judge Janice Clark gave a temporary restraining order, but Morvant dissolved it and dismissed Aetna’s plea for a preliminary injunction.
