Attorney General Liz Murrill told lawmakers on Tuesday that UnitedHealthcare potentially owes the state between $380 million and $768 million in overpayments for pharmacy costs, which is why her office instructed LDH to cancel its contract with the state, forcing thousands of Medicaid patients to switch insurance providers.
“I just don’t think that United needs to continue to be rewarded for obstructing our investigation into fraudulent or abusive tactics, in our implementation of a contract that cost us this much money,” Murrill said.
Murrill says UnitedHealthcare has also failed to turn over documents that prove they are complying with the contract.
Louisiana lawmakers expressed concern about ending the contract on January 1st, so LDH Secretary Bruce Greenstein told a legislative committee yesterday that they will give UnitedHealthcare through March to comply with the state’s orders. Murrill is okay with that.
“If you want to give them some runway, then I would ask that the committee support a condition that requires them to give us the documents that I have asked for. Because they owe us that,” Murrill said.
Lawmakers were concerned that ending the UnitedHealthcare contract on January 1st would result in a lapse of coverage for thousands of Medicaid patients, because it will take several weeks to get those Medicaid recipients on another insurance, which is why Greenstein said there will be a 90-day extension.
Murrill says the state has been litigating with UnitedHealthcare for five years.
“I will tell you my opinion about why I don’t think they want to provide the documents, because the documents show that we are entitled to a whole bunch of money back. That’s why I think they don’t want to give us the documents,” Murrill explained.