IL – House Approves Bill to Update Managed Care Procurement Process

June 2017 ~

The Illinois House has approved Senate Bill 1446 that, if finalized, would require the state to use the regular procurement process and would expand the state’s $9 billion Medicaid managed care program statewide, while reducing the number of contracted health plans.

Advocates of Senate Bill 1446 say the process being utilized by the Department of Healthcare and Family Services (HFS) to select vendors for the potential $9 billion program is not transparent enough. If approved, Senate Bill 1446 would require the state to use the regular procurement process when seeking new contracts to administer the managed care organization (MCO) system, versus the previously process used during a time when the state’s Medicaid managed care program was much smaller.

SB 1446 aims to bring independent oversight to the selection process and all contracts with MCOs by requiring that they go through the procurement process. The state’s chief procurement officer would review these deals and restrictions on campaign donations by bidders to the administration would apply.

Governor Bruce Rauner and IL lawmakers in support of the bill say reforms to the procurement system would speed-up the process, save money and get the state and its taxpayers better results by restructuring Medicaid and shifting nearly half a million patients into the crowded MCO system.

The bill is the largest procurement in state history financial commitment, with an estimated cost ranging anywhere from $35 billion to $40 billion, over four years.

After being passed 65-46 by the House, the bill now heads to the State Senate. The state Department of Healthcare and Family Services is expected to announce contract awards at the end of June.



Source(s): HMA; Illinois ComptrollerIllinois Policy; The State Journal-Register; Open Minds;