Group sues Oklahoma Medicaid agency over privatized managed care plans - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
January 10, 2023 Newswires
Share
Share
Post
Email

Group sues Oklahoma Medicaid agency over privatized managed care plans

Tulsa World (OK)

OKLAHOMA CITY — A group of local health care providers is suing the state's Medicaid agency over its request for proposals seeking entities to implement privatized managed care.

A newly formed company made up of eight Medicaid providers requested the Oklahoma Supreme Court compel the Oklahoma Health Care Authority to alter and reissue its request for proposals to award multibillion-dollar contracts for companies to oversee care for many of the state's Medicaid recipients.

The state agency and its CEO Kevin Corbett are named in the lawsuit filed Monday.

Equity Group Advancing Access and Services alleges OHCA's public bidding process for the managed care contracts does not, as was intended under state law, give preferential treatment to local providers already serving Medicaid patients.

"The OHCA released an RFP (request for proposals) that is flawed and circumvents state law," Variety Care president and CEO Lou Carmichael said in a news release. A member of the equity group's board of directors, Carmichael helped form the group in March.

"As written, the RFP makes it impossible for any Oklahoma-based PLE (provider-led entity) established under state statute to submit a competitive bid as the requirements in the RFP are written in such a way that no newly formed entity could ever win a contract."

Under a managed care or privatized Medicaid model, the OHCA will contract with outside companies to oversee the delivery of services for a majority of the more than 1 million Oklahomans receiving Medicaid benefits through SoonerCare.

The lawsuit argues the language in the RFP is nearly identical to a managed care RFP the agency issued prior to legislation passed last year that aimed to give Oklahoma medical providers a leg up in the bidding process that will undoubtedly include bids from national insurance companies.

The state Supreme Court struck down the OHCA's previous attempt to implement privatized managed care, saying the agency didn't have the authority to act without approval from the Oklahoma Legislature. That led lawmakers last year to pass Senate Bill 1337, which authorizes managed care and details how the OHCA should give preferential treatment in the bidding process to local provider-led entities.

The equity group argues it was disenfranchised in the bidding process because the RFP sought historical documentation that no newly formed entity could possibly provide. After expressing concerns to OHCA, the agency updated the RFP, but the lawsuit argues the changes were minor and did not undo the inherent bias against newly formed provider-led entities.

The lawsuit calls for the RFP to be declared null, void and unenforceable.

The lawsuit also alleges OHCA's plans violate state law because of the delayed timeframe to implement managed care. SB 1337 requires the Medicaid changes to take effect by Oct. 1. The state pushed back implementation of managed care until April 2024, according to the lawsuit.

OHCA issued its RFP in November. The agency is required by law to choose at least three entities, including one provider-led group, to offer health care coverage statewide. Its unclear when OHCA will announce the selected companies.

Former Democratic state Rep. Collin Walke, now an attorney at Hall Estill in Oklahoma City, is representing the group that brought the lawsuit.

Video: Avoid catching the flu this season

Older

Babylist Enters the Healthcare Industry Following Its First Strategic Acquisition

Newer

Average funded status of local, state retirement systems declined 6% in 2022

Advisor News

  • Could a narrower focus help grow your practice?
  • U.S. debt hits $40 trillion: how to support concerned clients
  • Flourish brings private-bank-like cash solution to MassMutual’s network
  • Majority of Americans concerned recent market highs are unsustainable
  • GLP-1 users choose between medication and retirement saving
More Advisor News

Annuity News

  • MassMutual Expands Lending Options With New Secured Credit Line
  • Corebridge Financial Introduces Progressive Trigger, a First-of-Its-Kind Index Annuity Strategy Designed to Turn Missed Years into Future Opportunity
  • Insurer proposes $1.1M deal to resolve CA teachers’ annuity fee lawsuit
  • IMOs get frustrated with slow carrier adoption of faster technology
  • New class-action lawsuit targets Delaware Life over annuity disclosures
More Annuity News

Health/Employee Benefits News

  • Centene Corp. (NYSE: CNC) Hits New 52-Week Peak
  • Wipro Announces Results for the Quarter Ended September 30, 2026
  • Trump administration bars Pa. and other states from using federal funds on transgender youth care
  • State Health Plan loses bid to stop Atrium program, shifts Atrium to out-of-network tier
  • Capable and experienced
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • SBLI Lowers OmniTrak Term Rates and Expands Underwriting Flexibility
  • Open Enrollment Starts November 1: Tampa Broker Ryan Michalek Urges Families and the Self-Employed to Check 2027 Costs Before They Auto-Renew
  • MassMutual Expands Lending Options With New Secured Credit Line
  • AM Best Affirms Credit Ratings of Aflac Incorporated and Its Subsidiaries
  • AM Best Upgrades Credit Ratings of Dah Sing Insurance Company Limited
Sponsor
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.