Another extension approved for Louisiana Medicaid contractor

State News

BATON ROUGE, La. (AP) — (9/11/19) Louisiana lawmakers have agreed for a sixth time to extend a contract to the company that processes Medicaid payments, without putting the work out for bid.

DXC Technology will be paid $47.8 million next year. The Louisiana Department of Health says that’s $68,000 more than this year, to cover inflationary increases.

House and Senate health committee members approved the one-year extension Monday.

The current contract had been held by Molina Medicaid Solutions since January 2005. DXC bought the company.

The contractor pays the companies that manage care for most Medicaid patients and does the prior authorization review for people to receive certain services. It processes some claims and enrolls health providers.

The health department says it will seek more competitive deals for the work, but that will take many years.

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