Louisiana Invests $17 Billion To Extend Its Medicaid MCO Contracts Through December 2026

The Louisiana Department of Health (LDH) extended five of its six Medicaid managed care organization (MCO) contracts for the Healthy Louisiana program through December 31, 2026, at a cost of more than $17 billion. The five plans with a full-year extension are Aetna Better Health of Louisiana, AmeriHealth Caritas Louisiana, Healthy Blue, Humana Healthy Horizons in Louisiana, and Louisiana Healthcare Connections. LDH extended its contract with the sixth plan, UnitedHealthcare Community Plan, only through March 31, 2026.

The MCO contracts were awarded in 2022 and went live on January 1, 2023, to serve the state’s 1.5 million Medicaid beneficiaries. The initial three-year contract term is followed by one two-year extension.

In November 2025, the state legislature had approved extending all six contracts, according to local news reports. The 2026 extension contracts are valued at $2.2 billion more than the previous year’s contracts.

The decision to cancel UHC’s contract came after the Louisiana First Circuit Court of Appeals reversed a decision on November 21, 2025, in the state’s complaint against the pharmacy benefit management (PBM) units of UHC and CVS Aetna (the parent company for Aetna Better Health of Louisiana), according to a news report. The state alleged the PBMs had overcharged Medicaid beneficiaries for prescription medications. The Louisiana attorney general’s office said UHC and CVS had violated state law, and that until they are compliant, they will be ineligible for state contract extensions.

Aetna Better Health of Louisiana later announced LDH had extended its contract through December 31, 2026. There was no date on that announcement or details about what changes were made to become compliant.

On December 12, 2025, LDH said it would cancel the UHC contract effective January 1, 2026, but on December 18, opted to extend the contract through March 31, 2026. LDH Secretary Bruce Greenstein said, “this extension gives us more time to take an even more thoughtful approach to transitioning members to new plans. Continuity of care is our highest priority so members can continue accessing their services without disruption.”

The approximately 300,000 members currently enrolled with UHC will be reassigned to a new health plan by March 31, 2026. After their assignment, they will have the opportunity to switch to a different plan, if desired.

Additional context about the contract extension was reported in Louisiana Approves Medicaid Contracts. They Are The Most Expensive Contracts In The State’s History on November 25, 2025, by the Louisiana Illuminator (accessed January 15, 2026).

The appeals court ruling in Louisiana v. OptumRx and UnitedHealthcare of Louisiana, Inc. was dated November 21, 2025 (accessed January 15, 2026).

For more information, contact:

March 2026     00US26EUA0004

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