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Judge rules against Managed Health in BadgerCare case

The Business Journal of Milwaukee, September 2, 2010

Managed Health Services has lost another battle against the state in its quest to win back a lucrative contract to manage the care of 240,000 people covered by Medicaid.

Milwaukee County Circuit Court Judge William Sosnay affirmed the state Department of Administration’s decision Wednesday that the state acted within its rights on April 12 when awarding four health maintenance organizations — UnitedHealthcare, Abri Health Plan, Children’s Community Health Plan and CommunityConnect Health Plan, which is a division of WellPoint — contracts to manage BadgerCare Plus recipients living in Milwaukee, Washington, Ozaukee, Waukesha, Racine and Kenosha counties.

Managed Health Services, a West Allis subsidiary of St. Louis-based Centene Corp., a national provider of Medicaid services, was the only company that applied and was not selected by the state.

Managed Health Services contends the state violated Wisconsin’s competitive bid law and alleges the Department of Health Services did not adhere to mandatory standards and awarded contracts to companies that ultimately will cost the state more money.