Marion County approves $773,174 OHA contract and new Health Department case rates to better capture Medicaid services

The Marion County Board of Commissioners on June 8 approved two Health Department actions intended to preserve community mental‑health services and improve how the county bills Medicaid.

Rod Calkins presented an intergovernmental agreement with the Oregon Health Authority for Choice Model Services totaling $773,174.89 for the 2016‑17 fiscal year, saying the contract is not for new services but is a renaming and direct funding route for services previously provided through the Mid‑Valley Behavioral Care Network. Calkins told the board the change moves funding directly from OHA to Marion County and adds roughly $120,000 in available services.

Calkins and Ryan Matthews also presented a new Health Department fee‑setting proposal to establish monthly case rates that better capture Medicaid‑eligible services currently difficult to code under fee‑for‑service billing. Presenters said Marion and Polk counties, together with consultant TriWest Group and the Mid‑Valley Behavioral Care Network, developed alternative payment methodology (APM) tools and proposed rates, including a high‑fidelity wraparound rate, to more accurately record and reimburse the cost of specialty services. The presentation noted federal regulators have been skeptical about how the state sets some rates, and county staff said the new case rates are intended to document and bill allowable services more completely.

The board moved and unanimously approved the OHA intergovernmental agreement and the fee‑setting action. Commissioners praised staff and the consultant for the work producing the proposed rates and documentation.

Next steps: staff will implement the newly approved case rates and continue APM development with local partners and the Mid‑Valley Behavioral Care Network; Board materials reference an Attachment A describing the TriWest engagement and the methodology work.