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April 14, 2012 5:00 AM

Medicaid deal in Missouri draws lawmakers’ scrutiny

Questions surrounding how the state awarded more than $1.1 billion worth of Medicaid contracts have sparked an investigation by the Missouri Senate. California-based Molina Healthcare discovered in February that it lost its contract to manage health care for Medicaid beneficiaries in Missouri. The company has filed a lawsuit alleging that state officials violated competitive bidding laws and changed the rules to favor another company, Centene Corp., which was a major donor to Gov. Jay Nixon, a Democrat.

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