Bill Text: IL SB3005 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Medical Assistance Article of the Illinois Public Aid Code. In provisions requiring the Department of Healthcare and Family Services to issue a purchase of care solicitation for Accountable Care Entities (ACE), makes the following changes: (i) extends the number of months an ACE shall be paid care coordination fees on a per member per month basis from "the first 18 months of operation" to "the first 24 months of operation"; (ii) extends the time period an ACE shall be paid on a pre-paid capitation basis for all medical assistance covered services from "in months 19 through 36 of operation" to "in months 25 through 48 of operation"; (iii) provides that in the fifth (rather than the fourth) and subsequent years of operation, unless the ACE selects a shorter period, an ACE shall convert to a Managed Care Community Network (MCCN); and (iv) provides that (a) the Department shall not require an ACE to connect to the Illinois Health Information Exchange (ILHIE) or to an Illinois regional Health Information Exchange that is connected to the ILHIE until the fifth and subsequent years of operation, unless the ACE selects a shorter period; and (b) in the third year and subsequent years of program operation, the Department shall establish an annual process to allow an ACE to expand its system capacity and number of participating providers and to provide an opportunity for the ACE to increase enrollment levels. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB3005 Detail]

Download: Illinois-2013-SB3005-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB3005 Introduced 2/7/2014, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
See Index
Amends the Medical Assistance Article of the Illinois Public Aid Code. In provisions requiring the Department of Healthcare and Family Services to issue a purchase of care solicitation for Accountable Care Entities (ACE), makes the following changes: (i) extends the number of months an ACE shall be paid care coordination fees on a per member per month basis from "the first 18 months of operation" to "the first 24 months of operation"; (ii) extends the time period an ACE shall be paid on a pre-paid capitation basis for all medical assistance covered services from "in months 19 through 36 of operation" to "in months 25 through 48 of operation"; (iii) provides that in the fifth (rather than the fourth) and subsequent years of operation, unless the ACE selects a shorter period, an ACE shall convert to a Managed Care Community Network (MCCN); and (iv) provides that (a) the Department shall not require an ACE to connect to the Illinois Health Information Exchange (ILHIE) or to an Illinois regional Health Information Exchange that is connected to the ILHIE until the fifth and subsequent years of operation, unless the ACE selects a shorter period; and (b) in the third year and subsequent years of program operation, the Department shall establish an annual process to allow an ACE to expand its system capacity and number of participating providers and to provide an opportunity for the ACE to increase enrollment levels. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning public aid.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Public Aid Code is amended by
changing Section 5-30 as follows:
(305 ILCS 5/5-30)
Sec. 5-30. Care coordination.
(a) At least 50% of recipients eligible for comprehensive
medical benefits in all medical assistance programs or other
health benefit programs administered by the Department,
including the Children's Health Insurance Program Act and the
Covering ALL KIDS Health Insurance Act, shall be enrolled in a
care coordination program by no later than January 1, 2015. For
purposes of this Section, "coordinated care" or "care
coordination" means delivery systems where recipients will
receive their care from providers who participate under
contract in integrated delivery systems that are responsible
for providing or arranging the majority of care, including
primary care physician services, referrals from primary care
physicians, diagnostic and treatment services, behavioral
health services, in-patient and outpatient hospital services,
dental services, and rehabilitation and long-term care
services. The Department shall designate or contract for such

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integrated delivery systems (i) to ensure enrollees have a
choice of systems and of primary care providers within such
systems; (ii) to ensure that enrollees receive quality care in
a culturally and linguistically appropriate manner; and (iii)
to ensure that coordinated care programs meet the diverse needs
of enrollees with developmental, mental health, physical, and
age-related disabilities.
(b) Payment for such coordinated care shall be based on
arrangements where the State pays for performance related to
health care outcomes, the use of evidence-based practices, the
use of primary care delivered through comprehensive medical
homes, the use of electronic medical records, and the
appropriate exchange of health information electronically made
either on a capitated basis in which a fixed monthly premium
per recipient is paid and full financial risk is assumed for
the delivery of services, or through other risk-based payment
arrangements.
(c) To qualify for compliance with this Section, the 50%
goal shall be achieved by enrolling medical assistance
enrollees from each medical assistance enrollment category,
including parents, children, seniors, and people with
disabilities to the extent that current State Medicaid payment
laws would not limit federal matching funds for recipients in
care coordination programs. In addition, services must be more
comprehensively defined and more risk shall be assumed than in
the Department's primary care case management program as of the

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effective date of this amendatory Act of the 96th General
Assembly.
(d) The Department shall report to the General Assembly in
a separate part of its annual medical assistance program
report, beginning April, 2012 until April, 2016, on the
progress and implementation of the care coordination program
initiatives established by the provisions of this amendatory
Act of the 96th General Assembly. The Department shall include
in its April 2011 report a full analysis of federal laws or
regulations regarding upper payment limitations to providers
and the necessary revisions or adjustments in rate
methodologies and payments to providers under this Code that
would be necessary to implement coordinated care with full
financial risk by a party other than the Department.
(e) Integrated Care Program for individuals with chronic
mental health conditions.
(1) The Integrated Care Program shall encompass
services administered to recipients of medical assistance
under this Article to prevent exacerbations and
complications using cost-effective, evidence-based
practice guidelines and mental health management
strategies.
(2) The Department may utilize and expand upon existing
contractual arrangements with integrated care plans under
the Integrated Care Program for providing the coordinated
care provisions of this Section.

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(3) Payment for such coordinated care shall be based on
arrangements where the State pays for performance related
to mental health outcomes on a capitated basis in which a
fixed monthly premium per recipient is paid and full
financial risk is assumed for the delivery of services, or
through other risk-based payment arrangements such as
provider-based care coordination.
(4) The Department shall examine whether chronic
mental health management programs and services for
recipients with specific chronic mental health conditions
do any or all of the following:
(A) Improve the patient's overall mental health in
a more expeditious and cost-effective manner.
(B) Lower costs in other aspects of the medical
assistance program, such as hospital admissions,
emergency room visits, or more frequent and
inappropriate psychotropic drug use.
(5) The Department shall work with the facilities and
any integrated care plan participating in the program to
identify and correct barriers to the successful
implementation of this subsection (e) prior to and during
the implementation to best facilitate the goals and
objectives of this subsection (e).
(f) A hospital that is located in a county of the State in
which the Department mandates some or all of the beneficiaries
of the Medical Assistance Program residing in the county to

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enroll in a Care Coordination Program, as set forth in Section
5-30 of this Code, shall not be eligible for any non-claims
based payments not mandated by Article V-A of this Code for
which it would otherwise be qualified to receive, unless the
hospital is a Coordinated Care Participating Hospital no later
than 60 days after the effective date of this amendatory Act of
the 97th General Assembly or 60 days after the first mandatory
enrollment of a beneficiary in a Coordinated Care program. For
purposes of this subsection, "Coordinated Care Participating
Hospital" means a hospital that meets one of the following
criteria:
(1) The hospital has entered into a contract to provide
hospital services to enrollees of the care coordination
program.
(2) The hospital has not been offered a contract by a
care coordination plan that pays at least as much as the
Department would pay, on a fee-for-service basis, not
including disproportionate share hospital adjustment
payments or any other supplemental adjustment or add-on
payment to the base fee-for-service rate.
(g) No later than August 1, 2013, the Department shall
issue a purchase of care solicitation for Accountable Care
Entities (ACE) to serve any children and parents or caretaker
relatives of children eligible for medical assistance under
this Article. An ACE may be a single corporate structure or a
network of providers organized through contractual

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relationships with a single corporate entity. The solicitation
shall require that:
(1) An ACE operating in Cook County be capable of
serving at least 40,000 eligible individuals in that
county; an ACE operating in Lake, Kane, DuPage, or Will
Counties be capable of serving at least 20,000 eligible
individuals in those counties and an ACE operating in other
regions of the State be capable of serving at least 10,000
eligible individuals in the region in which it operates.
During initial periods of mandatory enrollment, the
Department shall require its enrollment services
contractor to use a default assignment algorithm that
ensures if possible an ACE reaches the minimum enrollment
levels set forth in this paragraph.
(2) An ACE must include at a minimum the following
types of providers: primary care, specialty care,
hospitals, and behavioral healthcare.
(3) An ACE shall have a governance structure that
includes the major components of the health care delivery
system, including one representative from each of the
groups listed in paragraph (2).
(4) An ACE must be an integrated delivery system,
including a network able to provide the full range of
services needed by Medicaid beneficiaries and system
capacity to securely pass clinical information across
participating entities and to aggregate and analyze that

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data in order to coordinate care.
(5) An ACE must be capable of providing both care
coordination and complex case management, as necessary, to
beneficiaries. To be responsive to the solicitation, a
potential ACE must outline its care coordination and
complex case management model and plan to reduce the cost
of care.
(6) In the first 24 18 months of operation, unless the
ACE selects a shorter period, an ACE shall be paid care
coordination fees on a per member per month basis that are
projected to be cost neutral to the State during the term
of their payment and, subject to federal approval, be
eligible to share in additional savings generated by their
care coordination.
(7) In months 25 19 through 48 36 of operation, unless
the ACE selects a shorter period, an ACE shall be paid on a
pre-paid capitation basis for all medical assistance
covered services, under contract terms similar to Managed
Care Organizations (MCO), with the Department sharing the
risk through either stop-loss insurance for extremely high
cost individuals or corridors of shared risk based on the
overall cost of the total enrollment in the ACE. The ACE
shall be responsible for claims processing, encounter data
submission, utilization control, and quality assurance.
(8) In the fifth fourth and subsequent years of
operation, unless the ACE selects a shorter period, an ACE

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shall convert to a Managed Care Community Network (MCCN),
as defined in this Article, or Health Maintenance
Organization pursuant to the Illinois Insurance Code,
accepting full-risk capitation payments.
(9) The Department shall not require an ACE to connect
to the Illinois Health Information Exchange (ILHIE) or to
an Illinois regional Health Information Exchange that is
connected to the ILHIE until the fifth and subsequent years
of operation, unless the ACE selects a shorter period.
(10) In the third year and subsequent years of program
operation, the Department shall establish an annual
process to allow an ACE to expand its system capacity and
number of participating providers and to provide an
opportunity for the ACE to increase enrollment levels.
The Department shall allow potential ACE entities 5 months
from the date of the posting of the solicitation to submit
proposals. After the solicitation is released, in addition to
the MCO rate development data available on the Department's
website, subject to federal and State confidentiality and
privacy laws and regulations, the Department shall provide 2
years of de-identified summary service data on the targeted
population, split between children and adults, showing the
historical type and volume of services received and the cost of
those services to those potential bidders that sign a data use
agreement. The Department may add up to 2 non-state government
employees with expertise in creating integrated delivery

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systems to its review team for the purchase of care
solicitation described in this subsection. Any such
individuals must sign a no-conflict disclosure and
confidentiality agreement and agree to act in accordance with
all applicable State laws.
During the first 2 years of an ACE's operation, the
Department shall provide claims data to the ACE on its
enrollees on a periodic basis no less frequently than monthly.
Nothing in this subsection shall be construed to limit the
Department's mandate to enroll 50% of its beneficiaries into
care coordination systems by January 1, 2015, using all
available care coordination delivery systems, including Care
Coordination Entities (CCE), MCCNs, or MCOs, nor be construed
to affect the current CCEs, MCCNs, and MCOs selected to serve
seniors and persons with disabilities prior to that date.
(h) Department contracts with MCOs and other entities
reimbursed by risk based capitation shall have a minimum
medical loss ratio of 85%, shall require the MCO or other
entity to pay claims within 30 days of receiving a bill that
contains all the essential information needed to adjudicate the
bill, and shall require the entity to pay a penalty that is at
least equal to the penalty imposed under the Illinois Insurance
Code for any claims not paid within this time period. The
requirements of this subsection shall apply to contracts with
MCOs entered into or renewed or extended after June 1, 2013.
(Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13.)

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Section 99. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance