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Louisiana ending Medicaid contract with UnitedHealthcare — What this means for you
The contract ends amid allegations of overcharging Medicaid recipients, affecting 333,246 members who will transition to other plans starting Jan. 1, 2026.
Medicaid Director Seth Gold said in a Dec. 2 letter that LDH will not renew its contract with UnitedHealthCare of Louisiana, which expires Dec. 31, initiating a member transition for January 1, 2026.
State officials cite noncompliance and document disputes as the move follows litigation alleging insurers and pharmacy benefit managers overcharged Medicaid recipients.
Public contract documents show Aetna's $2.59 billion deal is larger than UnitedHealthCare's $2.06 billion contract, with the Louisiana First Circuit Court of Appeal siding with UnitedHealthcare.
LDH says enrollees will be automatically reassigned to one of the five remaining Medicaid providers using an algorithm for plan assignment prioritizing families and primary care providers, and recipients have 90 days to switch .
Lawmakers say they were blindsided when Gov. Jeff Landry's administration reversed course, leaving about 488,500 residents uncertain as transitions occur over the next two weeks and Christmas, with other private insurers expected to absorb enrollees.