Louisiana ends contracts with two Medicaid plans

The Louisiana Department of Health has ended contracts with Aetna Better Health of Louisiana and UnitedHealthcare Community Plan of Louisiana. These plans served approximately 488,500 Medicaid members. The termination stems from ongoing legal challenges related to pharmacy benefit managers and allegations of non-compliance with state requirements.

Transition plan aims to reduce disruption

The state intends to move affected members to one of the four remaining Medicaid managed care plans starting January 1. Officials say the reassignment will use an algorithm designed to keep families together and maintain access to current healthcare providers. However, the decision’s timing—just weeks before the new year and during the holiday season—raises concerns about potential gaps in coverage and delays in care.

Risks to continuity of care for vulnerable populations

This abrupt shift presents risks, especially for those with intellectual and developmental disabilities or high medical needs. Continuity of services and provider relationships are critical in these cases, and sudden coverage changes may disrupt ongoing treatment plans. The move is expected to cause short-term instability in Medicaid coverage across Louisiana as the state manages the reassignment and monitors the transition’s impact.