Cook Children's Health Plan sues the state of Texas over Medicaid contract dispute

Cook Children's Health Plan, a major provider of Medicaid health insurance to Fort Worth kids and families, is suing Texas over its plan not to award a Medicaid contract to the health system.

Officials with Cook Children's announced the suit, which was filed in Travis County, Wednesday.

The dispute is over the state's process for awarding contracts for Medicaid, the health insurance program that primarily provides insurance for children, pregnant and postpartum moms, and adults and children with disabilities. In the Tarrant County region, Cook Children's Health Plan has provided Medicaid and CHIP health insurance for kids and pregnant people for decades.

But in March, the Texas Health and Human Services Commission announced that it would not award a Medicaid contract to Cook Children's and multiple other local health plans. Instead, the state said it planned to award the contracts to United Healthcare, Molina, Blue Cross and Blue Shield, and Aetna for Tarrant County and five neighboring counties.

The health plan previously filed an appeal to the state's decision, but the state has stood by its original award.

A spokesperson for the Health and Human Services commission said the agency is not commenting on pending litigation.

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