The Pennsylvania Department of Human Services delayed the start of new managed Medicaid contracts to April 1 from Jan. 1, after Aetna won a preliminary injunction that blocked the state from continuing the process of implementing new contracts.
Aetna, which had 201,196 Pennsylvanians in its Medicaid managed care plans in March, objected to the state's use of undisclosed factors in its its decision-making.
After the preliminary injunction was issued on July 19 by a Commonwealth Court judge, the human services department restarted the procurement process, setting an August 22 deadline for proposals.
The new Medicaid contracts will affect $12 billion in state and federal spending and are supposed to increase the amount of money spent based on results, rather than simply paying for the quantity of care.
Under the original contract awards announced in April, Southeastern Pennsylvania would have seen two new entrants to the market, Centene Corp. (operating as Pennsylvania Health & Wellness) and UPMC for You Inc.