Implementation Timeline Change for Michigan Managed Care Request for Proposal

Contact: Jennifer Smith 517-241-2112

For Immediate Release: January 26, 2015

LANSING, Mich. – The Michigan Department of Community Health (MDCH) today announced a change to the implementation timeline for the upcoming request for proposal (RFP) for the Comprehensive Health Plan Contract for Michigan’s Medicaid Health Plans (MHP). This bid is transformational in a variety of aspects, so MDCH wants to ensure that bidders have adequate time to develop their submissions.  The bid will now be released by May 1, 2015, with responses due in August of 2015.

The Comprehensive Health Plan Contract provides health care services to Michigan’s Medicaid managed care beneficiaries. Current contract end dates will be extended from September 30, 2015 to December 31, 2015. New contracts as a result of the rebid will begin January 1, 2016.

MDCH and the Department of Technology, Management and Budget are aware that more time will be needed for bidders to develop adequate networks as a result of the recently released decision that all counties in a region must be included in all bids.  This is a departure from previous and current practice, which allowed plans to bid on individual counties within in a region, rather than all counties in a region.

For this requirement, all counties in Region 1, the Upper Peninsula, have a rural exception designation so only one plan will be needed for mandatory MHP enrollment. Additionally, Regions 2 and 3, northern lower Michigan, must be bid together and include all counties in both regions due to the number of covered lives in these rural counties.  A potential bidder may not bid on Regions 2 and 3 separately.

Michigan also intends to convert its current Children's Health Insurance Program (CHIP) program, called MIChild.  This change is contingent on approval by the Centers for Medicare and Medicaid Services (CMS).  If approved, it will result in this population being included in the Comprehensive Health Plan bid and contract, and as such will follow MHP service area and network adequacy requirements rather than the current MIChild service area and network adequacy requirements. 

As a reminder, all questions regarding the changes to the RFP are due by January 31, 2015, to Kristi Broessel at broesselk@michigan.gov. All questions and responses will be posted for easy reference by all potential bidders on the MDCH homepage at www.michigan.gov/mdch.

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