BATON ROUGE, La. (AP) — Gov. Bobby Jindal's administration intends to rework how it pays the private managed care networks that provide health services to two-thirds of Louisiana's Medicaid patients.

The Department of Health and Hospitals announced planned changes to its Bayou Health program, an insurance-based model that covers 900,000 Medicaid recipients, mostly pregnant women and children.

The changes — described to lawmakers at a Friday hearing — come as the current managed care contracts are expiring and DHH seeks new bids.

Currently, Bayou Health has two models. The state either pays companies a monthly premium for each enrollee and the companies pay health providers, or the state pays companies a management fee and reimburses health providers directly for each service rendered.

DHH intends to only use premium-based health plans in the next contracts.

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