Health Net Wins Big Arizona Contract

Woodland Hills-based Health Net has won a three-year contract to manage Medicaid benefits in Maricopa County, Ariz. –  a pact that sources suggest could be worth as much as $70 million annually.

Health Net will manage Medicaid benefits offered to enrollees in Maricopa County, which includes Phoenix, by far Arizona's largest metropolitan area. It contains about 65% of the state's 1.3 million Medicaid enrollees. The Medicaid program is known as the Arizona Health Care Cost Containment System.

Health Net spokesperson Brad Kieffer said the contract includes management of most facets of the county's Medicaid program, including physicians, hospitals, pharmacy and behavioral health services. 

The contract begins on Oct. 1. It includes an option for two additional renewals of one year apiece.

“We look forward to meeting the health care needs of AHCCCS-eligible beneficiaries in Maricopa counties,” said Bret Morris, president of Health Net of Arizona.

Health Net beat out the existing contractor, Phoenix Health Plan, which is a subsidiary of hospital operator Vanguard Health Systems.

In a statement, Vanguard said it was considering its options, including filing a protest by the April 1 deadline.