Arizona reaches settlement in long-term care dispute, awards 4 contracts

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Arizona has awarded Medicaid long-term care contracts to four managed plans after a yearlong dispute process. 

UnitedHealthcare, Centene, Banner-University Care Advantage and Mercy Care will manage the Arizona Long Term Care System-Elderly and/or Physically Disabled program, according to a May 2 news release. The new contracts will begin Oct. 1. 

In December 2023, the Arizona Health Care Cost Containment System, which manages the state’s Medicaid program, said it intended to award the long-term care contracts to UnitedHealthcare and Centene. 

The state later rejected appeals from Banner-University Care, Mercy Care and Blue Cross Blue Shield of Arizona. The state delayed the implementation of the contracts by one year, from October 2024 to October 2025. 

The contract awards were reached by a settlement agreement, according to the news release. The contracts will run for three years, with the option to be extended. 

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