(Chicago) – A top behavioral health advocate group told Illinois lawmakers at public hearing in Chicago on Thursday that multiple insurance companies managing the state’s Medicaid program owe community care providers an estimated $10 million on overdue bills stretching back to 2014.
Community Behavioral Healthcare (CBHA) CEO Marvin Lindsey revealed to members of the House Human Services Appropriations Committee that some MCOs have made progress on paying providers since the panel’s last legislative hearing in March 2017.
“While some Managed Care Organizations have made progress in paying outstanding claims, before the start of the new contract date, our members are still owed $10 million that date back as far as three years,” said Lindsey.
The House panel, chaired by State Rep. Greg Harris (D-Chicago), is reviewing the Illinois Department of Health and Family Services’ new, $60 billion Medicaid managed care contract with seven different insurance companies that took effect January 1, 2018.
Among those behavioral health providers with outstanding bills payable by managed care insurance companies is Lutheran Social Services of Illinois, which is currently owed $2.3 million. Of that amount, $1,026,000 is 90 days or more overdue and $436,615 is more than 365 days overdue.
“According to their contract with the Illinois Department of Health and Family Services, managed care companies are required to pay 90% of claims within 30 days and 99% of claims within 90 days,” Lutheran Social Services of Illinois Home and Community Services Vice President Tim Sheehan. “Fortunately, some Medicaid managed care organizations have made a concerted effort to pay down outstanding claims while others have not.”
Lindsey also noted that the state has contracted a private auditor to examine MCOs’ estimated liabilities to providers and that a report is scheduled to be released next month, but that the auditor has yet to contact community behavioral health providers.
“I am not aware of the auditing firm contacting one of our members,” said Lindsey. “And an interim report is due February 2018 and the clock is ticking on both the report and our members getting paid.”
The Department of Family Services hired Meyers and Stauffer, LLC, effective November 1, 2017, to audit the current MCOs to estimate liabilities for services provided by community behavioral health providers from July 1, 2014 to December 31, 2017.
“Last March, we testified before this committee on the MCO contract on what we believed would lead to a smoother process and transitions for community behavioral health providers, and providers getting paid for services delivered was near the top of that list,” said Lindsey. “Over the last 9 months, some managed care companies have made progress in paying back claims, but the fact remains other insurance companies are seriously lagging behind and community behavioral health providers are still owed $10 million.”