UnitedHealthcare of Mississippi, Inc. v. Amerigroup Mississippi, Inc., Magnolia Health Plan, Inc., Molina Healthcare of Mississippi, Inc., Mississippi True d/b/a Truecare and Mississippi Division of Medicaid

Mississippi Supreme Court·Decided June 20, 2024·No. 2022-SA-01216-SCT·Published

Opinion

IN THE SUPREME COURT OF MISSISSIPPI NO. 2022-SA-01216-SCT

UNITEDHEALTHCARE OF MISSISSIPPI, INC. v.

AMERIGROUP MISSISSIPPI, INC., MAGNOLIA HEALTH PLAN, INC., MOLINA HEALTHCARE OF MISSISSIPPI, INC., MISSISSIPPI TRUE D/B/A TRUECARE AND MISSISSIPPI DIVISION OF MEDICAID

DATE OF JUDGMENT: 11/15/2022 TRIAL JUDGE: HON. TIFFANY PIAZZA GROVE TRIAL COURT ATTORNEYS: SAMMY LEE BROWN, JR.

BRIAN PARKER BERRY

HUGH RUSTON COMLEY

GLEN AUSTIN STEWART

KATIE CAMILLE BERRY

GEORGE H. RITTER

JOHN P. SNEED

MARY MARGARET GAY

COURT FROM WHICH APPEALED: HINDS COUNTY CHANCERY COURT ATTORNEYS FOR APPELLANT: MARY MARGARET GAY KERI SULLIVAN HENLEY

ERIC J. WEISENBURGER

ALEX P. HONTOS

ATTORNEYS FOR APPELLEES: GEORGE H. RITTER DONNA BROWN JACOBS

TIMOTHY LEE SENSING

PHILLIP BUFFINGTON

KATHRYN RUSSELL GILCHRIST GLEN AUSTIN STEWART

JOHN P. SNEED

MARK W. GARRIGA

HUGH RUSTON COMLEY

TIMOTHY JAMES ANZENBERGER BRANT JAMES RYAN

NATURE OF THE CASE: CIVIL - OTHER DISPOSITION: AFFIRMED - 06/20/2024

MOTION FOR REHEARING FILED:

BEFORE KING, P.J., CHAMBERLIN AND ISHEE, JJ.

KING, PRESIDING JUSTICE, FOR THE COURT:

¶1. UnitedHealthcare of Mississippi, Inc. (United), submitted a qualification containing redacted information to the Mississippi Department of Medicaid (DOM) but ultimately was not selected for the contract. Subsequently, a public records request was submitted to the DOM seeking the redacted information contained in United’s qualification. United sought a protective order exempting the redacted information contained in its qualification from disclosure. After in camera review, the chancery court found, among other things, that the governmental sanctions compilation contained in the qualification was not exempt from disclosure. United appeals and argues that, because the sanctions compilation is either a trade secret or confidential commercial or financial information, it is protected from disclosure. Because United failed to meet its burden on either issue, we affirm the decision of the chancery court.

FACTS AND PROCEDURAL HISTORY

¶2. On December 10, 2021, the DOM issued Request for Qualifications No. 20211210 (the RFQ) seeking Managed Care Organizations (MCOs) to provide Medicaid Managed Care services after the incumbent contract expired. Mississippi Division of Medicaid, Request for Qualifications, RFQ # 20211210, https://medicaid.ms.gov/wp-content/uploads/2021/12/ DOM-CCO-Procurement-RFQ-No.-20211210.pdf (last visited June 10, 2024). The RFQ

contained a provision stating that, in order to be eligible to submit a qualification, offerors should provide documentation that the contractor performing the managed care has not been sanctioned by a state or federal government within the previous ten years. Id. It additionally contained a provision instructing the offeror to submit a public copy of the qualification from which any confidential information had been redacted if its qualification had included such information. Id.

¶3. In response, United, Amerigroup Mississippi, Inc., Magnolia Health Plan, Inc., Molina Healthcare of Mississippi, and Mississippi True d/b/a TrueCare submitted qualifications. United included in its qualification a compilation of governmental sanctions that it had incurred during the relevant time period. The sanctions compilation was redacted in the public copy that United submitted.

¶4. On August 10, 2022, the DOM awarded contracts to other offerors and not to United.1 Mississippi Division of Medicaid Office of Procurement, Memorandum (Aug. 10, 2022) http://medicaid.ms.gov/wp-content/uploads/2022/08/CCO-Procurement-Notice-of-Intent-to- Award-8.10.2022.pdf. Subsequently, United submitted a protest of the DOM’s award decision. Public Procurement Review Board, Meeting Minutes (Mar. 1, 2023), https://www.dfa.ms.gov/sites/default/files/PPRB%20Home/Meeting%20Minutes/2023/3 %20PPRB%20Agenda%20%26%20Minutes%203.1.23.pdf.

1 Contracts were awarded to TrueCare, Magnolia, and Molina. Mississippi Division of Medicaid Office of Procurement, Memorandum (Aug. 10, 2022) http://medicaid.ms.gov/wp-content/uploads/2022/08/CCO-Procurement-Notice-of-Intent-to- Award-8.10.2022.pdf.

¶5. On August 23, 2022, United received notice that several public records requests had been submitted to the DOM regarding the RFQs. Dorsey, Public Procurement Review Board Rule 1-301 Notice of UnitedHealthcare of Mississippi, Inc. (Sept. 1, 2022), https://medicaid.ms.gov/wp-content/uploads/2022/09/UHC-PPRB-1-301-Notice- 9.1.22-4896-2110-3153-Final.pdf. Pursuant to Mississippi Code Section 25-61-9:

Records furnished to public bodies by third parties which contain trade secrets or confidential commercial or financial information shall not be subject to inspection, examination, copying or reproduction under this chapter until notice to third parties has been given, but the records shall be released no later than twenty-one (21) days from the date the third parties are given notice by the public body unless the third parties have filed in chancery court a petition seeking a protective order on or before the expiration of the twenty-one-day time period.

Miss. Code Ann. § 25-61-9(1)(a) (Supp. 2023).

¶6. On September 1, 2022, United notified the DOM and other offerors of its intent to seek a protective order to prevent disclosure of the redacted information contained in its qualification. On September 12, 2022, United filed a petition for a protective order to prevent the disclosure of information sought in the public records request, including the sanctions compilation. United argued that the redacted information sought in the public records request was either trade secrets or confidential commercial or financial information. Further, United’s qualification was not selected by eleven out of one thousand possible points; therefore, United argued that any competitive advantage lost due to the release of its information could result in significant harm to its business.

¶7. Attached to the petition was the affidavit of Erica Crouch, vice president of proposals for UnitedHealthcare Community and State. Crouch stated that the RFQ response had

contained confidential and proprietary business information, including trade secrets. She wrote that the MCO market in Mississippi was very competitive and, consequently, disclosure of the redacted information would cause irreparable and substantial competitive harm to United.

¶8. TrueCare, Magnolia, Amerigroup, and Molina had also filed petitions for protective orders, and, because the petitions arose out of the same RFQ process, the chancery court entered an order consolidating the actions on October 4, 2022. The offerors then submitted redaction logs, along with their redacted and unredacted proposals, to the chancery court.

¶9. The chancery court conducted an in camera review of the disputed redacted items. On November 15, 2022, the chancery court entered a protective order that granted United’s petition in part and denied it in part. The chancery court found, in relevant part, that sanctions from government authorities are matters of public record subject to disclosure under applicable state law and ordered the DOM to disclose to the requestors the sanctions compilation. The court’s order stated that “[t]he disclosed information shall be considered confidential in nature and may only be used in connection with the MississippiCAN and/or CHIP protests and related proceedings.” The chancery court also limited access to the disclosed information to attorneys and persons involved in the protests and ordered the disclosed information to be destroyed after the protest proceedings.

¶10. United filed a notice of appeal and challenged the chancery court’s order only as to the sanctions compilation.

ANALYSIS

I. Motion to Supplement

¶11. In United’s designation of record, it designated, inter alia, as part of the record necessary for appeal:

a. Unredacted Copies of “Management Qualification, 4.3.1.2 Corporate Experience,” pp. 37-78 from Magnolia’s response to RFQs.

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UnitedHealthcare of Mississippi, Inc. v. Amerigroup Mississippi, Inc., Magnolia Health Plan, Inc., Molina Healthcare of Mississippi, Inc., Mississippi True d/b/a Truecare and Mississippi Division of Medicaid, (Mich. 2024).

UnitedHealthcare of Mississippi, Inc. v. Amerigroup Mississippi, Inc., Magnolia Health Plan, Inc., Molina Healthcare of Mississippi, Inc., Mississippi True d/b/a Truecare and Mississippi Division of Medicaid (UnitedHealthcare of Mississippi, Inc. v. Amerigroup Mississippi, Inc., Magnolia Health Plan, Inc., Molina Healthcare of Mississippi, Inc., Mississippi True d/b/a Truecare and Mississippi Division of Medicaid) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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