Posted: Jul 25, 2011 2:28 PM
BATON ROUGE - The state health department has tapped five private companies to run much of Louisiana's Medicaid program in managed care networks.
The "coordinated care network" contractors were announced Monday. The insurance-based model will begin in the New Orleans area Jan. 1.
Under one option, the networks will be run by private companies that contract with the state and negotiate payments with health providers. Companies selected are Louisiana Healthcare Connections, Amerihealth Mercy of Louisiana and AmeriGROUP Louisiana.
Under a second option, the state will continue to reimburse doctors, hospitals and providers in Medicaid directly, giving a flat fee for each service rendered. But private companies will coordinate patient care and share in savings generated by cutting costs. Those networks will be run by UnitedHealthcare of Louisiana and Community Health Solutions of America.