The Hawaii Coalition for Health said it is studying whether it should appeal the dismissal its federal lawsuit challenging the state's award of $1.5 billion of Medicaid contracts to two Mainland-based health plans.

On Thursday Federal Judge J. Michael Seabright dismissed the coalition's suit, marking the second time a federal court has tossed out a lawsuit challenging the state Department of Human Services' award of the contracts to units of UnitedHealth Croup Inc. and WellCare Health Plans Inc. The earlier lawsuit had been filed by AlohaCare, which lost out in bidding on the three-year contracts.

The Contracts call for providing healthcare to 37,250 low-income seniors, blind and disabled persons who currently receive treatment through a fee-for-service program.

Rafael Del Castillo, attorney for the coalition, said Seabright has yet to issue a written decision explaining the basis for his dismissal. He said a decision on an appeal will be made once the decision is available.