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Humana wins Florida LTC contract

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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.

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The Florida managed Medicaid LTC program will start enrolling Florida residents who need nursing home-level care in August, according to Humana.

Humana and Molina will managed home care and community-based care, such as adult day care facilities, as well as nursing home care.

Humana now manages care for about 50,000 South Florida residents and has been providing Medicaid benefits in the state since 1998.

Molina runs Florida Medicaid and Medicare plans with a total of 73,000 enrollees. The company also owns two primary care clinics in Florida.

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