A nonprofit organization supported by hospitals and another health care provider have filed complaints over Mississippi Medicaid’s decision to award a major managed care contract to other companies.
Mississippi True, a newly formed nonprofit backed by 65 hospitals, and Amerigroup have gone to court asking for damages and seeking a court order to bar the state from finalizing the Medicaid contract, which they contend was awarded improperly.
The agency made the decision to award the work to Magnolia Health, Molina Healthcare of Mississippi and UnitedHealthcare after the three scored the best in an assessment. UnitedHealthcare and Magnolia Health have managed the MississippiCAN program since it began in 2011.
The Clarion-Ledger reports the managed care companies will oversee the reimbursement of roughly $2 billion in public funds annually, according to Medicaid.
Each of three companies filed motions asking to intervene on the current lawsuit over the decision.
Medicaid declined comment on the litigation but said the division follows a “stringent procurement process in accordance with federal and state law and regulations.”
The contract award drew skepticism from some lawmakers who questioned whether officials discriminated against Mississippi True, a hospital-backed, nonprofit that responded to the state’s request for proposals.
Others questioned the rush to execute such a large contract without oversight by the body tasked with reviewing most contracts, the Professional Services Contract Review Board.
Mississippi True filed a complaint in Hinds County Chancery Court on July 13, and Amerigroup joined in on Aug. 2. The complaint contends Medicaid violated multiple requirements in awarded the work, which involves one of the largest expenditures in state history.
A Medicaid spokesperson said the contracts still require approval from the Centers for Medicare and Medicaid Services, which requires Medicaid to sign the contracts before it receives them. The contracts are not valid until approved by CMS.