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State Issues RFP on AABD Pilot Project (2/11/10)

The Illinois Dept. of Healthcare and Family Services (HFS) has issued a request for proposals to shift as many as 40,000 elderly, blind and disabled Medicaid beneficiaries in suburban Cook, DuPage, Kane, Kankakee, Lake and Will counties into two HMOs.  The submission deadline is April 15. According to an HFS press release, the pilot project is expected to save taxpayers close to $200 million in its initial five-year period.  If successful, HFS says it will identify other areas of the state where this model can work.

January 12, 2010

Hearing Held on State Plan to Move AABD into HMOs

The Illinois House Committee on Medicaid Reform, Family and Children Services held a subject matter hearing on Jan. 12 on the State’s plan to move as many as 40,000 Medicaid beneficiaries in the Aid to the Aged, Blind and Disabled (AABD) program into HMOs. IHA offered both oral and written testimony to the committee to present its concerns about the plan. To see IHA's written testimony, click here.

ACTION REQUESTED: Contact members of the committee (see list below) as well as your state Senator and Representative to express your concerns about this issue. To send an email to your local Senator and Representative, click here.

Background
The Illinois Dept. of Healthcare and Family Services (HFS) will soon be issuing a Request for Proposal seeking to contract with two HMOs to deliver integrated care to adults in the Aid to the Aged, Blind and Disabled population, who are not eligible for Medicare. Under this new program, as many as 40,000 Medicaid beneficiaries in DuPage, Kane, Kankakee, Lake and Will counties and the suburbs of Cook County (with non-606XX zip codes) would be affected, with mandatory enrollment beginning July 1, 2010.

IHA is concerned about the state’s timetable of less than six months to implement the program, which will result in a seismic shift in the way health care and other services are provided to large medically fragile populations. We believe that before moving a significant number of these beneficiaries into a new and unproven health care delivery system based on a theoretical approach, the Department should engage a much smaller population than is currently planned in a real world demonstration project to test and prove the concept. This demonstration should not be limited to HMOs.

In meetings with key officials from the Governor’s Office and HFS, IHA has continually urged the state to make sure that changes are carefully implemented in measured steps to ensure that integrated, comprehensive systems of care and safeguards are in place. It is critical that these vulnerable populations – who disproportionately suffer from chronic diseases and conditions – will continue to receive the help and services they need without any disruptions.