Court ruling clears Ohio to pen Medicaid contracts

By By ANN SANNER

COLUMBUS, Ohio (AP) — Ohio is prepared to move forward with certain Medicaid contracts after an appellate court ruled in the state's favor in a lawsuit that had blocked officials from signing the agreements.

Amerigroup Corp. had sued the state, claiming the contract application process was flawed. The insurer was not among the top scorers.

The contract winners will provide health care services to roughly two-thirds of Ohio's Medicaid population, or 1.6 million people. The contracts provide billions in government work to the winning companies.

The Franklin County Court of Appeals affirmed a lower court's decision in a 2-1 ruling on Friday, saying Amerigroup failed to prove the state Department of Job and Family Services abused its discretion in awarding the contracts.

Messages seeking comment were left Wednesday with the Virginia Beach, Va.-based Amerigroup.

©2014 by The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.