FAQs - MCO Procurement

Overview

The Office of Medicaid Policy and Planning (OMPP) seeks to improve healthcare delivery to Hoosier Healthwise members. To accomplish this task, the State implemented the following features to the Hoosier Healthwise Program effective January 1, 2007:

  • PMPs may contract with multiple MCOs. All managed care organizations (MCOs) have the opportunity to contract primary medical providers (PMPs), specialists, and other providers. PMPs have the option to contract with multiple MCOs.
  • The State is required by Federal regulation (42 CFR 438.52) to offer the choice of at least two MCOs in each nonrural area. The regions are designed to include at least one nonrural county and provide two MCOs in each region.
  • The State requires MCOs to manage behavioral healthcare, including mental health, substance abuse, and chemical dependency services, to promote comprehensive and coordinated medical and behavioral services for Hoosier Healthwise members. Services for Medicaid Rehabilitation Option (MRO), Psychiatric Residential Treatment Facility (PRTF), and long-term inpatient services in state-operated facilities are excluded from the behavioral health requirement.
  • MCOs must offer a provider network in each region that meets the State's requirements for access, availability, and comprehensiveness. MCOs must contract with Community Mental Health Centers (CMHCs), Federally Qualified Health Centers (FQHCs), and rural health centers (RHCs). MCOs should also affiliate with Women, Infants, and Children (WIC) clinics, school-based health clinics, homeless shelters, and other providers of service.
  • Electronic data sharing improves the quality of care provided to Hoosier Healthwise members while decreasing MCO and provider costs in the long term.

General questions

Q:  When did the new Hoosier Health plans start?

A: The new Hoosier Healthwise plans began January 1, 2007. New contracts will begin January 1, 2011.

Q:  Am I required to sign up with more than one health plan?

A: Providers have the choice to contract with more than one health plan but are not required to do so.

Q:  How does this affect my aged, blind, and disabled Medicaid patients?

A: Care Select members in the aged, blind, and disabled categories are not affected. To provide care to these members, providers should enroll in Care Select. See the Care Select page for more information.

Providers' panels and current patients

Q:  Will I need to have the same panel size with all plans?

A: PMPs are required to have a minimum panel of 150 members with at least one MCO and panels greater than zero for all other plans. There is no maximum panel limit.

Q:  Can I increase my current panel size?

A: PMPs may choose to increase their panel sizes, but it is not a program requirement.

Q:  Where do I send panel-full add requests, patient reassignment requests, prebirth PMP selections, and requests for member education and intervention?

A: Send requests to your MCO Provider Services Department. Send full-panel add requests to the enrollment broker. See Contact Information for Managed Care for contact information.

Q:  Do MCO contracts involve specialist contracts as well as PMPs? Hospitals? Ancillary?

A: Each MCO must comply with specific provider network composition requirements to ensure adequate access to the full spectrum of healthcare services for members within its network. With closed networks, services must be rendered by MCO-contracted providers. MCOs must pay out-of-network providers at 100 percent of the Medicaid rate, unless they have an agreement with the provider.

Q:  Does this affect the "carve-out" providers?

A: Yes, the behavioral health providers, including mental health, substance abuse, and chemical dependency services, are no longer considered "carved-out," and payment for these services are the responsibility of the MCO. Medicaid Rehabilitation Option (MRO), Psychiatric Residential Treatment Facility (PRTF), and long-term inpatient services in State-operated facilities are not included and still considered carved out.

Q:  Does this affect self-referral providers, such as podiatrists, vision care, chiropractors, and so forth?

A: There are no changes for these providers. The MCOs continue to be responsible for paying for self-referral services for their members. The claims for these services must be sent to the appropriate MCO for payment.

Reimbursement

Q:  Does reimbursement change?

A: Reimbursement arrangements are determined contractually between the MCO and the provider.

Q:  Do I have to receive capitation payment?

A: How you will be reimbursed is part of your negotiation with the MCO.

Q:  Are other physicians in my group practice eligible for reimbursement?

A: Yes. All IHCP providers are eligible to receive reimbursement subject to MCO referral and prior authorization requirements.

Q:  If I choose not to contract with an MCO, does the State reimburse me for medical record duplication expenses for my patients that are transferred to another doctor?

A: Federal regulation 42 CFR 447.15 requires that providers participating in Medicaid accept the State's reimbursement as payment in full (except that providers may charge for deductibles, co-insurance, and copayments). The reimbursement for services and the monthly administration fee you receive is intended to cover those costs. You do not receive additional reimbursement from the State for any cost associated with medical record duplication. In addition, any physician receiving payments from the IHCP for rendered services may not charge an IHCP member for copying or transferring medical records.

Q:  How much am I paid if I don't contract with an MCO but provide services to an MCO member?

A: MCOs must pay out-of-network providers at the lesser of the provider's usual and customary charges or 100 percent of the Medicaid rate, unless MCOs have a different agreement with the provider. Out-of-network services, except for emergency services, require prior authorization from the MCO.

Claims

Q:  How does working with Hoosier Healthwise affect my time limit for filing claims?

A: Noncontracted providers have one year to file the claims with the MCO unless they have another arrangement. Contracted providers have 180 days or fewer for claims that do not involved third-party payers. This may be part of your negotiations with the MCO.

Q:  Can I continue to submit my claims on paper or electronically?

A: Yes, contact the MCOs for more information on how to submit claims. MCOs may have different claims submission procedures and software options.

Q:  What if I disagree with how an MCO handled my claim?

A: Providers must send MCO claim disputes to the member's MCO (Anthem, Managed Health Services (MHS), or MDwise). Medicaid rule 405 IAC 1-1.6 outlines the MCO claims dispute process for out-of-network providers. Although a provider may make verbal inquiries at any time, the rule requires the provider to send an informal, written objection to the MCO within 60 days of the provider's receipt of claim payment or denial. If the matter is not resolved to the provider's satisfaction within 30 days of the commencement of the informal process, the provider has 60 days to submit a formal appeal to the MCO. Contracted providers have a similar dispute process in their contracts with the MCO.

Medicaid disability

Q:  What if I have a patient who may qualify for Medicaid disability?

A: The member must initiate the disability determination process by contacting the caseworker at the local office of the Division of Family Resources (DFR).The request for Medicaid disability determination must come from the member or authorized representative and cannot be made by a healthcare provider or other third party.

Auto-assignment

Q:  If I sign up with two health plans, how are my members be assigned?

A: If you change MCOs or add an MCO, your members stay with you and are assigned to the MCO with the lowest number of enrolled members. If you do not change or add MCO affiliations, your members also stay with you. The auto-assignment process reviews for previous PMP relationships, family relationships, and MCO relationships. If no match is found, the process compares member's geographical coordinates to PMPs in the MCO with the lowest number of enrolled members in closest proximity order.

Q:  How does this affect the number of members auto-assigned to me?

A: There is little effect on the number of members auto-assigned to your practice.

Service provision/authorization

Q:  Do I have to send my patients to different hospitals?

A: This depends on the MCO in which you are enrolled, and if it has open or closed networks. Some MCOs allow their providers to use only the hospitals with which they are contracted, while others allow the provider to decide on the hospital. MCOs require prior authorization for inpatient admissions.

Q:  What is the eligibility verification process?

A: The OMPP recommends that all providers verify member eligibility each time a member presents for services, before the service is rendered. Eligibility verifications include the following options: Automated Voice Response System (AVR), OMNI, and the Web interChange Web site.

Q:  Do my patients use the Hoosier Health Card?

A: Yes. They may also have an additional card issued by the MCO that identifies them as a member of the MCO's plan.

Q:  Do I prescribe the same prescription drugs?

A: Maybe. You need to become familiar with your MCOs formulary.

Q:  Can I participate in the Vaccines for Children (VFC) program?

A: Yes.