University of Chicago Medicine severs ties with Medicaid insurer IlliniCare
U. of C. Medicine follows Northwestern Medicine and Advocate Health Care in walking away from
When the contract ends next month, about 8,000 IlliniCare members will no longer be able to get in-network services from U. of C. Medicine or
That includes members who are part of a program serving women, children and adults who gained coverage as part of Medicaid expansion under the federal Affordable Care Act as well as a program serving older adults, people who are blind, and people who are disabled.
"After nearly two years of working to resolve payment issues, we are disappointed to announce that our current contract with IlliniCare Medicaid is scheduled to end
But
"There is a challenge with being reimbursed by the state ... but IlliniCare has continued to pay all of its providers in well under 30 days and with 99.9 percent accuracy," Marrah said.
He said it's not totally clear to IlliniCare why U. of C. Medicine is terminating its partnership with the insurer, though both parties say they're open to further talks.
Both IlliniCare and U. of C. Medicine say they're working to help affected patients as they transition to new care. The health system has been getting about 100 to 200 calls a day from patients concerned about the termination after sending out notice last month.
Representatives from
Though it's unclear how large a role payment problems played in the U. of C. dispute, other Medicaid managed care organizations have struggled to pay their bills because of the state's budget problems. It's a situation that is "dramatically reducing the Medicaid recipients' access to health care," according to a June court order forcing the state to pay the insurers more money.
About 2 million
Another Medicaid managed care organization,
Yet another Medicaid managed care organization,
Since lawmakers approved a budget last month, the state has started to pay the insurers more, but it still owes Medicaid managed care organizations about
Gov.
The idea behind Medicaid managed care, in general, is to improve patients' health and spend money more efficiently.
Eight of the current 12 insurers responded to a request for proposals to participate. The state has not yet announced which insurers will be part of the revamped program.
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