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Aetna, three other insurers protest Pennsylvania contracts

Contract negotiations between Pennsylvania Department of Human Services and bid winners on hold.
By Susan Morse , Executive Editor

Aetna is among four insurers that have filed bid protests against the Pennsylvania Department of Human Services for awarding three other organizations state managed care contracts to serve dual eligibles and other beneficiaries.

Because of the protests, the department has stayed negotiations with the bid winners AmeriHealth Caritas, Pennsylvania Health and Wellness, and UPMC for You, according to a statement from the agency.

The four losing bidders that filed protests are Aetna Better Health, Gateway Health Plan, Molina Healthcare of Pennsylvania and WellCare of Pennsylvania, the department said.

[Also: Aetna, Humana fire back at feds over DOJ attempt to block merger]

In August, after receiving responses to its requests for proposals, the Pennsylvania Department of Human Services awarded the managed care agreements for its new Community HealthChoices program.

The new initiative will use managed care organizations to coordinate healthcare and long-term services and supports for older persons, persons with physical disabilities, and Pennsylvanians who are dually eligible for Medicare and Medicaid.

Community HealthChoices is scheduled to be phased in over three years starting July 1, 2017.  It provides beneficiaries with access to home services.

"We are committed to increasing opportunities for older Pennsylvanians and individuals with physical disabilities to remain in their homes," said DHS Secretary Ted Dallas.

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The statewide contracts are worth an estimated $5.4 billion in annual revenue, according to philly.com.

Bid winners AmeriHealth Caritas deals in Medicaid as the nation's second largest provider-sponsored health plan; Pennsylvania Health and Wellness is part of Centene; and UPMC for You is part of the University of Pittsburgh Medical Center.

Twitter: @SusanJMorse