Louisiana officials are scrapping multibillion-dollar contracts the state has with insurers to manage its Medicaid program, The Franklin Sun reports.
Three things to know:
1. State Chief Procurement Officer Paula Tregre said she made the decision because the Louisiana Department of Health didn't comply with laws and guidelines when awarding the contracts.
2. The decision came after two insurers who lost bids to manage the program, Louisiana Healthcare Connections and Aetna Better Health, filed protests against the contract awards. The protests alleged bias, and forced Louisiana to put into place emergency contracts with its current partners while the dispute ensued.
3. The decision to throw out the contracts can be appealed, according to The Franklin Sun. The dispute could ultimately end up in court.