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Committee reviews $2 million request to expand Medicaid value‑based purchasing
Summary
The Senate Appropriations Human Resources Division discussed a $2,000,000 request to expand Medicaid value‑based purchasing to new provider types, funding contractor expertise and infrastructure.
The Senate Appropriations Human Resources Division discussed a $2,000,000 appropriation request to expand Medicaid value‑based purchasing to additional providers, including critical access hospitals and certain residential treatment providers, during its medical services review.
Sarah Acre, executive director for the Division of Medical Services at the North Dakota Department of Health and Human Services, told the committee the department seeks the funds to buy “additional subject matter expertise” to do data analysis, work with providers on cost reports and help vendors manage a move to value‑based payment models. “When we think about infrastructure development … we’re also looking at additional technology tools,” Acre said.
The department described the request as split evenly between general and federal funds and said Medicaid administrative costs are matched at 50 percent federal medical assistance percentage (FMAP). Acre told members the department would run a competitive request for proposals to select a vendor and would not exceed the appropriated amount: “As we develop request for proposals … depending on what's appropriated, we would … not exceed this,” she said. Committee members asked for clarity about what the money would buy and whether it funds contractors or permanent staff; Acre said the majority would fund contractor expertise, data analysis and provider engagement.
Committee members pressed on the mechanics and oversight: who would be selected, whether Optimus (the department’s current vendor for health system value‑based work) would be eligible, and how the department would handle vendor bids that exceed the appropriation. Acre said the department would run a competitive RFP and consider cost proposals when awarding a contract. Several members asked the department to treat the $2 million as a cap and to return with further detail if bids exceed available funding.
The committee did not record a formal floor vote on the request during this session; department staff emphasized the intent is to use the funding to build capacity, data reporting and provider supports that would help implement value‑based purchasing for new provider types.
