Louisiana’s largest Medicaid plan, Louisiana Healthcare Connections (LHCC), has warned Ochsner Health System that its contract could expire on Dec. 1, potentially leaving as many as 70,000 Medicaid recipients without access to Ochsner’s hospitals and clinics. The notice, sent on June 1, has sparked urgent talks between the two parties, but no deal has been reached.
Negotiations at a standstill
Mary Armstrong, Ochsner’s vice president of managed care, wrote to state Medicaid director Seth Gold asking that the Dec. 1 deadline be withdrawn. She argued that extending the timeline would preserve continuity of care for members and urged the department to ensure LHCC pays Ochsner for services already rendered if the contract falls apart.
Gold told reporters that members who lose access to Ochsner can switch to one of the other three private Medicaid plans operating in the state. He emphasized that the Department of Health is monitoring the dispute closely and will intervene if necessary to protect beneficiaries.
State officials weigh in
Sen. Patrick McMath, R‑Covington and chair of the Senate Health and Welfare Committee, expressed concern for the 70,000 patients who could be affected. “That’s my concern,” he said, underscoring the importance of stable provider partnerships for Louisiana’s most vulnerable residents.
LHCC’s public statement, posted Sept. 22, said the plan hopes to reach a new agreement but described its existing contract as “outdated.” The plan argued that its members deserve a partnership that reflects modern technology, care coordination, quality measurement and member expectations, rather than terms set fifteen years ago.
Potential consequences for the Medicaid plan
Gold warned that if LHCC were to terminate its relationship with Ochsner, the plan could face penalties for failing to provide sufficient provider coverage across the state. “If LHCC was to do this, they better be able to ensure that in South Louisiana or North Louisiana … there is availability of providers that are Ochsner providers that make up the difference for them,” he said.
The dispute comes as Louisiana’s Medicaid program has been reshaped under Governor Jeff Landry’s administration. Since Landry took office in early 2024, the state has tightened eligibility reviews, reducing enrollment from 1.6 million to about 1.3 million. The administration argues these reforms protect taxpayers and ensure that benefits go to those truly in need.
Broader Medicaid landscape
LHCC is the largest of the six privately managed Medicaid plans that existed at the end of 2025, covering 377,000 of the state’s 1.4 million Medicaid enrollees. Its $5.8 billion contract, set to be reviewed by the Joint Legislative Committee on the Budget on Thursday, will be extended through 2027 pending approval.
Recent exits by UnitedHealth and Healthy Blue (run by Elevance Health and Blue Cross Blue Shield of Louisiana) have left fewer options for Medicaid beneficiaries. The state hopes that continued negotiations will keep Ochsner in the network, preserving access to high‑quality care for low‑income families, pregnant women and individuals with disabilities.
What’s next?
Both Ochsner and LHCC have indicated a willingness to continue talks, and the Department of Health has pledged to facilitate a resolution. Stakeholders, including local legislators and patient advocates, will be watching the upcoming budget committee meeting for any signals about the plan’s future.
For now, Medicaid recipients are encouraged to stay informed about their provider options and to contact the Department of Health with any concerns about continuity of care.
Original reporting: KTBS 3 (Shreveport) — read the source article.
