Losing bidder's protest delays Nebraska Medicaid contract signing

Nebraska has delayed the signing of new Medicaid managed care contracts until a protest filed by a losing bidder is resolved, the Omaha World-Herald reported Nov. 6. 

The state awarded Medicaid contracts to Molina Healthcare of Nebraska, Centene subsidiary Nebraska Total Care and UnitedHealthcare of the Midlands in September. The new contracts start Jan. 1, 2024. However, Community Health Plan, doing business as Healthy Blue, filed a protest in October, according to the report. Healthy Blue currently holds a managed care contract in the state.  

State Medicaid Director Kevin Bagley told lawmakers Nov. 4 that Healthy Blue had been in third place after all the bids were reviewed and scored. He said the difference between Healthy Blue and fourth-place Molina was "very small," and that circumstance prompted officials to add oral interviews with all bidders. Molina surpassed Healthy Plan in the rankings after those interviews, which focused on the insurers' plans for innovation, integration and access to care for marginalized communities.  

The Nebraska Department of Health and Human Services' COO denied Healthy Blue's protest in an Oct. 24 letter, according to the report. The company can now request a meeting with the department's CEO as well as pursue the issue in court. 

The protest is not expected to delay the start of the new contracts, according to the report.

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