News

Changes in the works for Bayou Health

by Walter Pierce

Gov. Bobby Jindal's administration intends to rework how it pays the private managed care networks that provide health services to two-thirds of Louisiana's Medicaid patients.

BATON ROUGE, La. (AP) - Gov. Bobby Jindal's administration intends to rework how it pays the private managed care networks that provide health services to two-thirds of Louisiana's Medicaid patients.

The Department of Health and Hospitals announced planned changes to its Bayou Health program, an insurance-based model that covers 900,000 Medicaid recipients, mostly pregnant women and children.

The changes - described to lawmakers at a Friday hearing - come as the current managed care contracts are expiring and DHH seeks new bids.

Currently, Bayou Health has two models. The state either pays companies a monthly premium for each enrollee and the companies pay health providers, or the state pays companies a management fee and reimburses health providers directly for each service rendered.

DHH intends to only use premium-based health plans in the next contracts.