Louisiana health officials seek 12-month extension for Medicaid managed-care contracts as lawmakers press for fixes

BATON ROUGE — The Louisiana Department of Health asked the Joint Legislative Committee on the Budget on Oct. 16 to extend its existing contracts with six Medicaid managed care organizations for 12 months while the agency redesigns quality measures, strengthens oversight and seeks better outcomes for about 1.4 million enrollees.

Undersecretary Drew Maranto told the committee: "The Department of Health is requesting approval to extend our existing contracts with the 6, Louisiana managed care organizations for an additional 12 months that would start in January." He said the extension would "ensure continuous coverage for approximately 1,400,000 Medicaid enrollees across Louisiana."

The request set off extensive questioning from senators and representatives about access to care, nonemergency medical transportation (NEMT), provider payments and how supplemental and directed payment programs affect the state budget. Lawmakers repeatedly pressed the department for more detail about enforcement, contract language changes and the magnitude and source of new dollars that will flow through the MCOs.

Why it matters: The requested extension uses part of an existing 24-month renewal option in current contracts and would postpone a full rebid while LDH finalizes major edits to incentives and oversight. Lawmakers said they need detail on the…