Louisiana Ends UnitedHealthcare Contract, Reassigns Thousands of Members

State health department transitions 280,000 Medicaid enrollees to new insurance providers

Mar. 31, 2026 at 10:52pm

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The Louisiana Department of Health has officially closed out its contract with UnitedHealthcare, reassigning over 280,000 Medicaid members to new insurance plans after a 90-day extension period. During this transition, more than 36,000 members actively selected a new plan, while the remaining members were algorithmically assigned to plans that aimed to keep families together and maintain existing provider networks.

Why it matters

This change impacts a significant portion of Louisiana's Medicaid population, requiring thousands of residents to transition their health coverage. The state's goal is to ensure continuity of care and minimize disruption for members, though the scale of the shift raises concerns about potential access issues or coverage gaps.

The details

The contract between LDH and UnitedHealthcare was initially set to end in late 2025, but was extended by 90 days to allow for a special enrollment period from January 15 to February 15, 2026. During this time, over 36,000 of the 280,000 United members selected a new plan. For the remaining members who did not choose a new provider, LDH used an algorithm to automatically reassign them to new plans, prioritizing keeping family members together and maintaining existing provider relationships.

  • The LDH-UnitedHealthcare contract was originally set to end in late 2025.
  • A 90-day extension was granted, running from late 2025 through March 2026.
  • A special enrollment period was held from January 15 to February 15, 2026 to allow members to select new plans.
  • After February 15, remaining members were automatically reassigned to new plans.

The players

Louisiana Department of Health (LDH)

The state agency responsible for administering Medicaid and overseeing the transition of members from UnitedHealthcare to new insurance providers.

UnitedHealthcare

A major national health insurance company that previously provided coverage to over 280,000 Medicaid enrollees in Louisiana under contract with the state.

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What’s next

LDH will continue to monitor the transition to ensure Medicaid members maintain access to care and coverage. Members who are unsatisfied with their new plan will be able to switch providers without penalty.

The takeaway

This large-scale transition of Medicaid coverage in Louisiana highlights the complexities involved in managing public health insurance programs. While the state aimed to minimize disruption, the shift of hundreds of thousands of members to new plans raises concerns about potential access issues or coverage gaps that will need to be closely monitored.