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Kentucky officials say reprocurement of Medicaid managed-care contracts could cost $2.5–2.8 million
Summary
State Medicaid officials told a Senate committee that reprocurement of the Commonwealth’s managed-care organizations (MCOs) will require an estimated $2.5 million to $2.8 million in administrative spending and additional IT and implementation work.
State Medicaid officials told a Senate committee that reprocurement of the Commonwealth’s managed-care organizations (MCOs) will require an estimated $2.5 million to $2.8 million in administrative spending and additional IT and implementation work.
The estimate came during questioning about Senate Bill 13 at a meeting of the Senate Appropriations and Revenue Committee. “When we procured last time…that’s how much we spent: $2,500,000,” Lisa Lee, commissioner for the Department for Medicaid Services, said of the 2018–19 procurement. Steve Bechtel, the department’s chief financial officer, added the agency applied about 10% growth to that historic figure and rounded to $2.8 million to arrive at the current estimate.
The department said the cost estimate covers reworking the request for proposals (RFP) document, additional oversight staff and procurement consultants, and IT system modifications to accept…
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