LA SR194

Louisiana Department of Health requested to review the efficiency and effectiveness of the Medicaid managed care program, implemented in 2012, using outcome data to evaluate whether contractors are improving health status of enrollees

Department must submit a report to the Senate by January 1, 2026, outlining efforts to improve healthcare outcomes, oversight of managed care organizations, and effectiveness of health quality measure incentives

Medicaid program covers approximately 1.6 million individuals (35% of state population), including over 650,000 children, with a recommended FY 2025-2026 budget of nearly $19 billion, up from $11.6 billion in FY 2017-2018

Legislative auditor found that from January 2018 through December 2022, the state paid managed care organizations $720 million to manage care for nearly 50,000 beneficiaries who received no services during that five-year period

Resolution cites Louisiana ranking 49th or 50th nationally in healthcare outcomes despite billions in annual Medicaid spending, with concerns about payments going to managed care organization subsidiaries rather than Louisiana healthcare providers