May 3, 2011

State Announces Selection of
Managed Care Plans for FY12

This archived news story is from May, 2011.
To read more current stories on SURS and Benefits, click here!


HUMAN RESOURECES & University Payroll and Benefits recently sent a memo to benefits eligible employees. The memo read: 

PLEASE BE assured that your concerns about the State of Illinois’ recent decision regarding managed care plans are being heard. On April 12, University of Illinois President Michael Hogan sent a letter to the Illinois Department of Healthcare and Family Services, as well as to Governor Pat Quinn and our local legislators, to communicate the impact of this decision upon the University. You may read President Hogan’s letter at http://nessie.uihr.uillinois.edu/pdf/benefits/ManagedCare041211.pdf 

Background 

ON APRIL 6, the State of Illinois announced its decision to award the contracts for administering HMO services to BlueCross BlueShield HMO Illinois and BlueCross BlueShield Blue Advantage. Open Access Plan (OAP) contracts were awarded to HealthLink OAP and PersonalCare OAP. These awards were arrived at through a competitive Request for Proposal (RFP) process governed by the state Procurement Code. The University of Illinois had no input on this decision.

THE FOLLOWING link includes the Illinois Department of Health and Family Services press release and fact sheet with FAQs:
http://www.cms.illinois.gov/3_servicese_ben_choice/Managed-care-FY2012.htm. 

Quality Care Health Plan 

THE CHANGES announced on April 6 do not impact the Quality Care Health Plan.

PersonalCare HMO vs. PersonalCare OAP 

PERSONALCARE HMO, which will not be a part of the State’s managed care plan, is a different provider than the new PersonalCare OAP option that will be available. Employees who are currently enrolled in PersonalCare HMO will need to select a new plan.

Health Alliance and Humana HMOs 

HEALTH ALLIANCE HMO, Health Alliance Illinois, Humana Health Plan, and Humana–Winnebago will not be part of the State’s health insurance plan beginning July 1, 2011. Both the Health Alliance and Humana Medical Plans have protested this decision. The State of Illinois Procurement office has stated that reviewing the protests could take weeks. Employees who are currently enrolled in one of the Health Alliance or Humana plans will need to select a new plan. 

What Should Employees Do Now? 

UNIVERSITY FACULTY and staff do not need to take any immediate action with regard to their choice of managed care plan until the annual Benefit Choice period, which will begin on May 1, 2011, and last through at least May 31, 2011. Prior to this time, employees will receive instructions on when and how to choose a new health plan.

IN THE meantime, employees may wish to familiarize themselves with the differences between an HMO and an OAP plan. See the following resources: 

Pages 12–15 of Your Guide to University of Illinois Benefits at https://nessie.uihr.uillinois.edu/pdf/benefits/benefitsummarybooklet.pdf 

Please note that cost information is applicable to the current plan year and is subject to change July 1, 2011. 

Pages 8-11 of last year’s Benefit Choice Options booklet at https://nessie.uihr.uillinois.edu/pdf/benefits/BC_Booklet.pdf 

AGAIN, COST information is applicable to the current plan year and is subject to change July 1, 2011. 

What is the University Doing Now? 

WHILE DISCUSSIONS and vendor protests are ongoing with the State, the University is preparing for the possibility that employees in Health Alliance HMO, Health Alliance Illinois, PersonalCare HMO, Humana Health Plan, and Humana-Winnebago will need to select a different managed care provider during the annual Benefit Choice period, which began May 1, 2011. The University will provide instructions via email, and will schedule informational sessions and computer labs to assist with this choice. 

THE UNIVERSITY continues to monitor the developments in this area closely. No further information has been provided by the State of Illinois. We will relay more information as it becomes available. 

THE ILLINOIS Department of Health and Family Services press release is available at http://www.state.il.us/cms/download/pdfs_benefits/HFS-Press-Release.pdf 

THE ILLINOIS Department of Healthcare and Family Services (HFS) earlier this month announced that it has selected four managed care organizations to provide benefits to State employees, dependents, and retirees starting July 1. The plans also will provide care to members of the Local Government Health Plan, the Teachers’ Retirement Insurance Program, and College Insurance Program. State officials estimate that the award of these four contracts will result in a savings of approximately $102 million in Fiscal Year 2012, and a savings in excess of $1 billion over the life of the contracts. 

“PROVIDING HIGH quality health care is our highest priority,” said HFS Director Julie Hamos. “Through these plans, we are also able to realize significant savings for taxpayers and improve our state’s fiscal health. At the end of a thorough evaluation of the bids we received, we are confident that the managed care plans selected will provide the quality health care that members of the State group insurance system expect to receive, as well as significant savings.” 

THE SELECTED managed care plans will replace the incumbent plans, whose contracts expire June 30, 2011. Members of the State’s four group insurance programs will have the option to select a health plan that meets their needs during the annual Benefit Choice period in May. 

AS A result of a competitive Request for Proposal (RFP) process, the State gave notice that it intends to award the contracts for administering Health Maintenance Organization (HMO) services to two plans that are part of BlueCross BlueShield (BCBS): BCBS HMO Illinois and BCBS Blue Advantage. A separate RFP for Open Access Plan (OAP) services led to the selection of HealthLink OAP and PersonalCare OAP. 

FIVE PROPOSALS were received and evaluated for HMO services, with the two BlueCross BlueShield proposals receiving the highest scores based on a combination of technical responsiveness and price. For the OAP service, four proposals were received and scored, with HealthLink OAP and PersonalCare OAP receiving the highest scores based upon a combination of technical responsiveness and price. 

LETTERS ARE being sent to members, which outline the steps they must take if they are enrolled in one of the incumbent plans that is being replaced. Additionally, information regarding all of these changes will be included in the Benefit Choice Options book available on the benefits web site: www.benefitschoice.il.gov, as of May 1, 2011.

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