State Extends Contract with Optum Idaho

BOISE, Idaho (AP) — Officials with the Idaho Department of Health and Welfare have approved a 15-month contract extension with Optum Idaho.

The contractor manages mental health and substance treatment for Idaho Medicaid recipients. Optum has been in charge of administering Medicaid outpatient behavioral health services since 2013. The original $300 million contract expired in March. The new extension costs more than $186 million and expires at the end of June 2017.

Optum, a unit of UnitedHealth Group, also manages Medicaid health services for other states. Spokesman Tom Shanahan says the agency chose to extend the contract to give officials more time to study recent suggestions from state evaluators. The Idaho Office of Performance Evaluations recommended in January that the state consider adopting inpatient services as part of the managed care contract.