Nearly 300,000 Louisianans on Medicaid must soon choose a new plan. Here’s what to know.

About 290,000 people who get Medicaid through the Healthy Blue plan will soon have to choose a new insurer after one of the five companies that offer Medicaid in the state decided to pull out of Louisiana.

The Louisiana Department of Health announced this month that Healthy Blue, which is owned by parent company Elevance Health, will no longer provide Medicaid coverage in Louisiana beginning Jan. 1.

The Health Department is working to ensure doctor's visits and medications stay covered for the roughly 290,000 people switching plans, Health Secretary Bruce Greenstein told a panel of state lawmakers Thursday.

In Louisiana, about 1.3 million are on Medicaid, a government-funded health insurance program for poor and disabled people.

Healthy Blue members will have the option to select one of Louisiana's four other Medicaid plans during a special enrollment period Oct. 15 to Nov. 16, Medicaid Director Seth Gold said.

Aetna, AmeriHealth Caritas, Humana and Louisiana Healthcare Connections will continue to offer plans in Louisiana, which state officials are set to renew for 2027.

For anyone who misses the signup window this year, the Health Department will use algorithms to select a new plan for participants, Gold said. The goal is to both keep family members on the same plan and ensure a person's primary care doctor and pharmacy benefits continue to be covered based on claims data, Gold said.

Healthy Blue members will also have three additional windows to switch plans next year, he said.

Louisiana goes from six Medicaid plans to four

Greenstein said Healthy Blue did not provide the Health Department specific reasons for leaving the Louisiana market and referred questions on the decision to the company.

Healthy Blue did not respond to questions about why it is leaving Louisiana and what led to the decision.

"Since 2012, it has been our privilege to serve Louisiana Medicaid members," a statement from the organization said.

"Our focus remains on serving Medicaid members through December 31, 2026," the statement said. "Until then, members should continue to use their Healthy Blue benefits and get the care and services they need."

This summer, multiple outlets reported that Elevance Health, Healthy Blue's parent company and one of the largest managed care companies in the U.S., planned to downsize its Medicaid business in a number of states due to weak profit margins.

This is the second insurer to stop offering a Medicaid plan in Louisiana this year, though the circumstances are unrelated.

Louisiana officials abruptly decided against renewing a Medicaid contract with UnitedHealthcare late last year over a dispute tied to pharmacy benefits. UnitedHealthcare ended its Medicaid contract in Louisiana in April.

Greenstein told lawmakers he is confident the four remaining plans will remain available in the coming years.

"I've spoken to the senior leadership in each these plans in their national office and have great assurance that none of them plan to leave," he said. "We're not concerned at all about having fewer plans."

In fact, some state officials and lawmakers have been pushing to reduce the number.

Having fewer plans reduces the administrative burdens on healthcare providers and on the Health Department, Greenstein said.

He also noted that having more people in each plan can lead to better services for patients.

"When a plan can become more efficient, they can make more money, and then they can offer more benefits," he said.

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