NEWS RELEASE
May 6, 1997
Community Health Announces Managed Care Bid Recommendations
Michigan Department of Community Health Director James K. Haveman, Jr. and Medical Services Administration CEO Robert Smedes today announced the completion of a major step in the state's move to managed care for Medicaid recipients in southeast Michigan.
Thirteen Qualified Health Plans were named to administer the Comprehensive Health Care Plan that will cover most low-income persons who have traditionally participated in the Medicaid program recommendations. Contracts with these 13 Qualified Health Plans will now be submitted to the State Administrative Board for final review and approval. The plans were selected through an open Request for Proposal (RFP) process managed by the Department of Management and Budget.
The Department has a "readiness review" process underway to assure that the recommended plans are prepared to meet the conditions of the contract as stipulated in the proposal before a contract is finalized. The review will involve an on-site evaluation and assessment of capability and validation of contracts and agreements contained in their bid packages.
The objective of the RFP is to implement a managed care program for the delivery of comprehensive health care services to targeted Medicaid populations in Genesee, Macomb, Oakland, Washtenaw and Wayne counties.
"This is another step in the process of improving the quality of care for Michigan's citizens, and accountability for expenditures to Michigan taxpayers, " said Governor John Engler. "The plan focuses on quality of care and accessibility to services for families and taxpayers. Cost of care will be lower and more predictable because the competitive bidding process has shown us that rates can be reduced."
"The Department of Community Health has worked hard to improve the quality of care for Michigan citizens, create a better organization of public health services and get better values for taxpayer dollars that go into health services. This announcement continues that agenda," said Haveman.
"Individuals will have a number of choices when it comes to deciding which plan is best for them. Sixty-seven percent of the Medicaid recipients in these counties are currently enrolled in the recommended health plans," said Smedes.
In Genesee County, recipients will have four plans to choose from. The recommended bids are Health Plus, M-Care, Total Health Plan and Wellness Plan.
In Macomb County, recipients will have nine plans to choose from. The recommended bids are Cape Medical, Care Choices, Detroit Medical Center, Health Alliance, Midwest Health Plan, Select Care, Total Health Plan, Ultimed, and Wellness Plan.
In Oakland County, recipients will have eleven plans to choose from. The recommended bids are Cape Medical, Care Choices, Detroit Medical Center, Health Alliance, Midwest Health Plan, Oakwood Health Plan, Omnicare, Select Care, Total Health Plan, Ultimed, and Wellness Plan.
In Washtenaw County, recipients will have five plans to choose from. The recommended bids are Care Choices, Health Alliance Plan, M-Care, Midwest Health Plan, and Select Care.
In Wayne County, recipients will have twelve plans to choose from. The recommended bids are Cape Medical, Care Choices, Detroit Medical Center, Health Alliance Plan, M-Care, Midwest Health Plan, Oakwood Health Plan, Omnicare, Select Care, Total Health Plan, Ultimed, and Wellness Plan.
The Department expects the Comprehensive Plan to be in effect by July 1, 1997. At that time, the state will also have an enrollment counseling service available to assist people on Medicaid make an informed choice of health plans.
The Department has worked with consumers, families, professionals, providers and advocates gathering input on the plans. The initiatives used a selective contracting process with organized systems of care such as HMO's, integrated health care systems, provider sponsored networks, and community-based service networks. Contracts will be based on performance requirements and financial risk-sharing.
The State Administrative Board is scheduled to review the health plans on May 20, 1997.
FOR IMMEDIATE RELEASE PRESS CONTACT: Geralyn Lasher
May 6, 1997 (517) 241-2112