State Changing Medicaid Contracts

BATON ROUGE (AP) — The Jindal administration won't renew a contract with Magellan of Louisiana to coordinate services for poor residents with mental health and addictive disorder problems.

         Instead of the one company caring for Medicaid patients' maladies, state health chief Kathy Kliebert says the care will be covered by the five private insurance companies the state pays to manage the medical care of more than 920,000 Medicaid patients.

         Magellan has been the subject of two scathing legislative audit reports for its failure to meet some contract requirements. The Advocate’s Marsha Shuler reports health officials came under intense questioning by legislators Thursday about what was being done to fix problems.

         Kliebert says the move will be gradual, and Magellan will remain on contract while transition plans are developed and contract terms are worked out.

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