Editor's note: This story was updated Sept. 12 to reflect that the Arizona Health Care Cost Containment Systems upheld its original contract awards.
Arizona will uphold contracts awarded to UnitedHealth and Centene to manage the state's long-term care Medicaid program.
In August, a judge sided with three payers who challenged the contract award and recommended the state issue a new request for proposals.
In a Sept. 8 news release, the Arizona Health Care Cost Containment Systems asid it would uphold its original award, as it "applied the procurement process fairly to all bidders, including the non-awarded health plans."
Mercy Care, Blue Cross Blue Shield of Arizona and Banner University Family Care challenged the procurement process. The plans will have the opportunity to file a motion for rehearing or review with the state or appeal for judicial review.
According to the news release, no decision has been made on when the transition will resume. Mercy Care and Banner University Family Care currently manage the state's Medicaid services for 26,000 individuals who are elderly or who have a physical disability.
In a statement shared with Becker's a spokesperson for Mercy Care said the insurer is "disappointed in this denial given the thorough review and recommendation" provided by an independent judge.
"We are reviewing the next available steps as part of the appeal process, and we call on AHCCCS to implement a stay to avoid unnecessary disruption to member care until those legal processes have concluded," the spokesperson said.