Aetna dropped from state Medicaid program

Aetna has lost its Ohio Medicaid contract, which it won just two months ago to manage about 1.7 million recipients after the state reviewed bids from all insurers that submitted proposals for the program.

The Ohio Department of Job and Family Services (JFS) originally awarded lucrative contracts worth billions of dollars to five insurers, including Aetna. But two insurers, Molina Healthcare and Centene, filed protests over the state's scoring of the proposals after they didn't win contracts, reported Business First.

JFS officials rescored the bids in response to the protests and, as a result, rescinded its offers to Aetna and Meridian Health Plan on Thursday. Upon reevaluation, DJS found it wrongfully awarded points to Aetna for operating managed-care plans in several states, including taking on full liability when it actually had only limited involvement, the Columbus Dispatch reported.

A JFS spokesman told The Wall Street Journal that the contracts don't include a set expiration date, but the department will renew all contracts annually. The contracts, which begin Jan. 1, don't allow for any further protests, the spokesman added.

To learn more:
- read the Columbus Dispatch article
- see the Wall Street Journal article
- check out the Business First article

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