State announces rebidding of Medicaid managed care contracts

Just days after announcing plans to include quality standards in new contract language for Medicaid managed care plans, the Kasich administration announced that it was rebidding all of its MMC contracts (Source: “Kasich announces new contracts for Ohio's Medicaid program,” Columbus Dispatch, Jan. 11, 2012).

Using language adopted by Catalyst for Payment Reform, a non-profit organization of large private payers, the new managed care contracts will withhold a portion of payments until performance standards are met. Other significant changes to the managed care program announced by the Ohio Department of Job and Family Services, include Medicaid recipients having a choice or four plans, up from two or three currently. Also, , in an effort to increase competition and lower administrative costs, the state will reduce the number of service regions from eight to three and combines coverage for the Aged, Blind and Disabled (ABD) and Covered Families and Children (CFC) populations in each region. 

State officials expect to announce preliminary contract awards in April and finalize contracts by the end of the year.