IL – Six Insurers to Take Part in Overhauled Medicaid Managed Care

August 2017 ~

The Illinois Department of Healthcare and Family Services has announced the names of the insurers that will take part in Governor Bruce Rauner’s proposed overhaul of the state’s Medicaid Managed Care program. Under the Governor’s proposal, the state will reduce the number of insurers in its managed care program from twelve to six.

Governor Rauner announced plans in February to revamp the managed care program to cover 80% of those on Medicaid as well as children under the care of the Department of Children and Family Services, stating that the changes would streamline the program’s administration and improve health care for many of the state’s poorest residents.

Advocates of the changes also say they’ll help to reduce administrative headaches for providers and make the program less confusing for patients. Healthcare and Family Services director Felicia Norwood says the change means overhead costs will be reduced. The new contracts are expected to save the state anywhere from $200 to $300 million a year.

“By operating with an ideal number of plans, overhead costs will be reduced while we make sure every beneficiary receives powerful choice,” said Norwood. “This means more of the program’s money going to real people instead of bureaucracy.”

The six insurers selected to be part of the state’s planned overhaul program over the next four years include:

• BlueCross BlueShield of Illinois
• Harmony Health Plan
• IlliniCare Health
• Meridian Health Plan
• Molina Healthcare
• CountyCare Health Plan

The insurers that will no longer participate in the program cover more than 500,000 Medicaid participants statewide. Nearly two-thirds of all Illinois residents on Medicaid (approximately 2 million people) are currently in managed care programs. Illinois residents covered by these insurers are expected to see major changes in coverage from this reduction and will have to switch plans.

Insurers not selected to take part in the program include:

• Aetna Better Health of Illinois
• NextLevel Health
• Family Health Network
• Humana
• Cigna-HealthSpring
• Community Care Alliance of Illinois

Source(s): Chicago Tribune; Leavitt Partners;