The Florida Agency for Health Care Administration has resolved a Medicaid managed long-term care (LTC) bidding dispute by splitting much of the state between a unit of Humana Inc. (NYSE:HUM) and a unit of Molina Healthcare Inc. (NYSE:MOL).
The agency has awarded a 5-year contract for the areas around Jacksonville, Daytona Beach and Fort Lauderdale to Humana, and a 5-year contract for the areas around Tampa and Sarasota to Molina.
Humana and Molina will both get to do business in the Miami area.
Liz Dudek, the secretary in charge of the agency, said in a statement that she was happy to see Humana and Molina agree to resolve their bid protests by accepting the agency’s proposal rather than by going to court.
“Resolving these protests through negotiation eliminates unnecessary delay in implementing the program or subjecting taxpayers to expensive litigation,” Dudek said.