Judge Dismisses Molina Healthcare’s Missouri Medicaid Lawsuit

State Judge B.C. Drumm Jr. dismissed Molina Healthcare’s lawsuit against Missouri’s Medicaid program, saying the managed care provider has no legal grounds to delay the state’s Medicaid contracts, according to a St. Louis Post-Dispatch report.

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In February, the state awarded Medicaid managed care contracts totaling $1.1 billion to only three health plans: Centene Corp., Missouri Care and Health Care USA. Molina officials alleged Commissioner of Administration Doug Nelson, who monitors the Missouri Medicaid program, improperly limited the number of companies that could receive a contract and changed the requirements.

However, Judge Drumm said Molina participated in the state’s bidding process for several months and made no objections to the process until it had learned it had lost, according to the report. The judge also said Molina was fully aware Missouri was going to limit the number of managed care firms to three.

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