LINCOLN- Nebraska Medicaid officials have delayed signing new contracts with private companies to manage most of the state’s $1.8 billion Medicaid services until a protest filed by a losing bidder is resolved.

The Department of Health and Human Services said that despite the hiccup, there should still be plenty of time ahead of the January 1, 2024 deadline to choose three winning bidders.

Community Care Plan of Nebraska, doing business as Healthy Blue, filed a protest last month of the department’s announced intent to award new Medicaid managed care contracts to three other companies. Healthy Blue currently holds one of the contracts.

DHHS has announced they expect to give the awards to Molina Healthcare of Nebraska, Nebraska Total Care and United HealthCare of the Midlands. Molina Healthcare is the only one not currently under contract.

State Medicaid Director Kevin Bagley told state lawmakers that Healthy Blue had been in third place after evaluators reviewed and scored all of the bids. To further solidify this position they conducted oral interviews in which Molina Healthcare replaced Health Blue.

Bagley called the selection process a, "very robust and clean process." Healthy Blue may now discuss the situation with DHHS director Dannette Smith or take the issue to court.

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