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The Honolulu Advertiser
Updated at 4:40 p.m., Wednesday, June 18, 2008

Judge dismisses AlohaCare's challenge of Medicaid contract

Advertiser Staff

U.S. District Court Judge Susan Mollway ruled in favor of the state today by dismissing an AlohaCare lawsuit that attempted to overturn contracts awarded for the new QUEST Expanded Access Medicaid program.

The program will provide comprehensive and coordinated managed care for about 37,000 low-income seniors and disabled people who currently receive treatment through a fee-for-fervice Medicaid system, according to a news release from the state Department of Human Services.

AlohaCare, one of three losing bidders for a QExA contract, filed a protest against the competitive bidding process conducted by the Department of Human Services, which administers Medicaid programs. The protest was later rejected by the independent State Procurement Office, and now AlohaCare's Federal lawsuit has also been dismissed.

"We are pleased with this latest decision in Federal Court rejecting AlohaCare's claims," said DHS Director Lillian Koller. "These claims are clearly without factual or legal merit, and it is unfortunate that AlohaCare — a disappointed bidder — has disparaged the winning bidders, frightened our Medicaid clients and confused the physicians who care for them."