Indiana drops Molina from $3.8B Medicaid long-term services contract

Molina Healthcare will no longer administer Indiana Pathways for Aging, a long-term services Medicaid contract, the company said in regulatory filings published Oct. 2. 

In March, Indiana selected Molina, UnitedHealthcare, Humana Healthy Horizons and Anthem Blue Cross to administer the new program, designed to help Medicaid members over 60 remain in their homes, beginning in July 2024. The contracts are worth an estimated $3.8 billion for each company, the St. Louis Business Journal reported

In documents filed with the Securities and Exchange Commission, Molina said it was required to have a dual eligible special needs program in place in Indiana by Jan. 1 but was "unable to do so due to an administrative requirement of CMS." 

Indiana is the only state in Molina's portfolio affected by CMS' administrative requirements, the insurer said in the filings. The contract loss will not affect the company's 2024 financial outlook, it said. 

The Indiana Family and Social Service Administration said it is continuing readiness review activities with the other three payers it selected to manage the program. 

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