Illinois Medicaid contracts awarded
NEWS IN BRIEF — Posted Sept. 20, 2010
Illinois is starting a managed care medical home program for 40,000 elderly and disabled adult Medicaid recipients. The state awarded Aetna and St. Louis-based Centene contracts to administer the program for five years. The two companies will be paid a combined $450 million each year on a capitated basis.
Administering care under a medical home model is expected to save the state $200 million over five years. The companies will be required to meet an 88% medical-loss ratio, meaning they must spend at least 88 cents of every dollar they receive from the state on medical care. The state can renew the contracts for up to five more years.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/09/20/bibf0920.htm.