Protest by Medicaid bidder not expected to delay start of Nebraska managed care contracts - 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
Newswires
Newswires RSS Get our newsletter
Order Prints
November 9, 2022 Newswires
Share
Share
Post
Email

Protest by Medicaid bidder not expected to delay start of Nebraska managed care contracts

Lexington Clipper-Herald (NE)

Nebraska Medicaid officials have delayed signing new contracts with private companies to manage most of the state's $1.8 billion Medicaid services until a protest filed by a losing bidder is resolved.

But the Department of Health and Human Services said last week that there should be plenty of time for the three winning bidders to prepare before the planned Jan. 1, 2024, start date for the contracts.

Community Care Plan of Nebraska, doing business as Healthy Blue, filed a protest last month of the department's announced intent to award new Medicaid managed care contracts to three other companies. Healthy Blue currently holds one of the contracts.

HHS officials announced plans in September to award the new contracts to Molina Healthcare of Nebraska, Nebraska Total Care and United HealthCare of the Midlands. Two of those, Nebraska Total Care and United HealthCare, have current contracts. Molina Healthcare is new to Nebraska but provides Medicaid, Medicare and Affordable Care Act marketplace plans in several other states.

The three companies will be responsible for managing physical and behavioral health care, pharmacy services and dental benefits for almost all Medicaid patients in a program called Heritage Health. Together, they will oversee the care of some 347,000 Nebraskans.

State Medicaid Director Kevin Bagley told state lawmakers Friday that Healthy Blue had been in third place after evaluators reviewed and scored all of the bids.

But he said the margin between the third- and fourth-place companies was very small, prompting officials to add oral interviews with all the bidders. Molina moved up in the rankings after those interviews, which focused on the companies' plans for innovation, integration and access to care for marginalized communities.

Larry Kahl, the HHS chief operating officer, denied the company's protest in a letter dated Oct. 24. Healthy Blue now has the option to request a meeting with Dannette Smith, the HHS CEO. The company also can pursue the issue in court.

Bagley said he was not part of the initial scoring and is not involved with the protest. But he defended the bidding process that the state has followed.

"We believe this has been a very robust and clean process," he said in a briefing for the Health and Human Services Committee.

Nebraska's procurement process has come under scrutiny after a series of cases in which officials wound up choosing a low-cost bidder that failed to do the job. The most recent case was the selection of St. Francis Ministries, a Kansas-based nonprofit, to manage Omaha-area child welfare cases.

St. Francis got the job after bidding 40% less than the previous contractor, the Omaha-based PromiseShip. Although the agency fell short on key contract requirements, the state was forced to sign an emergency rate increase in January 2021. By December, state officials announced an early termination of the contract.

Bagley said Friday that the Medicaid managed care bidders were not competing on cost. Rather, each was required to accept the per-member, per-month payment rates set by the state and to compete on other factors, such as being able to produce better health care results.

The winning bidders were selected from among five contenders. The fifth bidder, Medica Community Health Plan, which currently offers health coverage to Nebraskans through the ACA marketplace, has not filed a protest.

The current Heritage Health contracts date to 2017, when the state signed with three private companies to administer what was then $1.2 billion worth of Medicaid services. Since then, two of the original three companies merged, which led to the state signing a contract with Healthy Blue.

Heritage Health does not cover nursing home care and other long-term support and services for the elderly and people with disabilities.

Older

Cyber Insurance Market Next Big Thing : Major Giants- Allianz, AIG, AXA: The Global Cyber Insurance Market to witnessed good recovery in growth post first half of 2022 and is projected coverup market sizing during the forecast period (2022-2028).

Newer

Look out for health insurance that seems too good to be true

Advisor News

  • Benefit Costs Squeeze Schools, Driving Cuts, Tax Hikes And Difficult Tradeoffs
  • Why client insurance needs could change even if their life doesn’t
  • Most Gen Z investors think less than a year ahead when making financial decisions
  • IRI pitches retirement agenda to Jeffries as democrats shape affordability platform
  • Help child-free clients plan for their later years
More Advisor News

Annuity News

  • Guidance, bulletin or reg? NAIC debates form of annuity illustration update
  • Nationwide adds mutual fund-linked strategy to New Heights Select FIA
  • NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
  • NAIC working group pressed to accelerate annuity illustration overhaul
  • State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
More Annuity News

Health/Employee Benefits News

  • State reverses one-third of health insurer decisions
  • ATTORNEY GENERAL TONG STATEMENT ON HEALTH INSURANCE RATE HIKES
  • GOP candidates turn up the volume on lower health insurance costs
  • How Lahn, Sand see future for Medicaid
  • Regulators claim limited power to control health insurance rate increases
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • State reverses one-third of health insurer decisions
  • AM Best Revises Outlooks to Negative for Kemper Corporation, Its Affiliates and Subsidiaries
  • WARREN PROBES RISE OF PRIVATE INVESTMENT FIRMS IN INSURANCE SECTOR FOLLOWING MARK WALTER SCANDAL
  • AM Best Affirms Credit Ratings of Erie Insurance Group’s Members and Erie Family Life Insurance Company
  • MIB reports double-digit life insurance app activity in record August
Sponsor
More Life Insurance News

NEWS INSIDE

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

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
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.