Sept. 10--The company running Cook County's Medicaid insurance plan that was fired last month warned that changing administrators "threatens a major disruption" to the plan's 171,000 members.
Jeff Joy, president and CEO of IlliniCare Health Plan, made his first public comments Wednesday about the termination of a $1.8 billion, five-year contract awarded last year. IlliniCare provides the back office and operational infrastructure to CountyCare, the Medicaid managed care plan of the Cook County Health Hospitals System, the two-hospital safety net for the poor and uninsured.
IlliniCare was chosen in part because of its track record overseeing similar health plans for the state. The company, a subsidiary of St. Louis-based Centene, also has its own Medicaid managed care plan in Illinois.
The health system saw the direct competition from IlliniCare as a potential conflict of interest and decided to seek a new administrator. The health system has begun a search to replace IlliniCare.
Joy said in a statement that "there are a number of ways to adjust IlliniCare's management role while maintaining continuity of care for CountyCare members and addressing issues related to competition."
Some Cook County commissioners raised questions about the IlliniCare contract at Wednesday's board meeting. One said she was disturbed about the change.
Dr. John Jay Shannon, CEO of Cook County Health, said at the meeting that IlliniCare hasn't done anything to violate the contract but reiterated that the competition from IlliniCare for Medicaid beneficiaries represents a potential conflict.
"Things are changing very rapidly in this space," Shannon said. "If you are going to do Medicaid in Illinois, Cook County is where the money is. It's where the members are."
IlliniCare released Joy's statement after the meeting ended. Joy said IlliniCare has brought financial and operational transparency to CountyCare and supported enrollment growth of 68 percent through its 370 local employees.
He said implementing a new management system for a complex health plan "involves significant risk." Some commissioners also asked Shannon about potential disruption and he responded that the health system is preparing for the transition and will try to make it as seamless as possible.
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