Louisiana ends Healthy Blue Medicaid deal affecting 290,000 people

By Misty Castile | The Center Square

Louisiana is ending its Medicaid managed care partnership with Healthy Blue, a change that will force more than 290,000 people to move to another health plan by the beginning of next year.

The Louisiana Department of Health announced Tuesday its contract with Healthy Blue will end Dec. 31. Healthy Blue members will retain their Medicaid coverage but will have to transition to one of four remaining Healthy Louisiana plans beginning Jan. 1.

The change does not affect members' eligibility for Medicaid, and they can continue using their Healthy Blue benefits through the end of the year.

"For the people we serve, the measure of a successful transition is simple: Can they continue seeing their doctors, filling their prescriptions, and receiving the services they need?" LDH Secretary Bruce Greenstein said. "That is the standard guiding our work."

Healthy Blue currently covers more than 290,000 Louisiana Medicaid members. The plan has served Louisiana Medicaid members since 2012 and has operated in collaboration with Blue Cross and Blue Shield of Louisiana since 2017 for Medicaid and Medicare dual-eligible members.

The Healthy Blue transition marks the second time this year Louisiana Medicaid members have been moved from a departing managed care plan. UnitedHealthcare's Medicaid contract ended March 31 after the Louisiana Department of Health chose not to renew it, prompting nearly 280,000 members to move to other plans beginning April 1.

Members will receive letters from Healthy Blue by Oct. 1 explaining their options and the steps required to change plans.

A special enrollment period will run from Oct. 15 through Nov. 16. Members will be able to choose among Aetna Better Health, AmeriHealth Caritas Louisiana, Humana Healthy Horizons in Louisiana and Louisiana Healthcare Connections.

Anyone who does not choose a plan will be assigned to one before Jan. 1. LDH said it will make an effort to keep members of the same family together and place people in plans that include their existing in-network health care providers.

The department said additional guidance will be released on how the transition will affect prior authorizations, prescriptions, scheduled appointments and other continuity-of-care issues.

"Significant efforts are already underway," Louisiana Medicaid Executive Director Seth Gold said. "Additional resources for affected members will be available to ensure this is a seamless transition, and no one is left without the coverage they need."

The change applies only to Medicaid members enrolled in Healthy Blue. Private insurance provided through Blue Cross and Blue Shield of Louisiana is not affected.