RFP 27-88343 - Att K2 - Exhibit 1 Healthy Indiana Plan - Statement of Work [Add. 1].docx

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Attached to
Indiana Medicaid Managed Care Organizations
Solicitation number
RFP 27-88343
Issued by
Marion County, Indiana

About this file

This Statement of Work outlines the requirements for Managed Care Organizations (MCOs) to provide coordinated statewide risk-based managed care services to beneficiaries enrolled in four Indiana Medicaid programs administered by the Family and Social Services Administration (FSSA) Office of Medicaid Policy and Planning (OMPP): Hoosier Healthwise, Healthy Indiana Plan, Hoosier Care Connect, and Indiana PathWays for Aging. Hoosier Healthwise serves approximately 589,000 low-income children and pregnant women, while the Healthy Indiana Plan covers approximately 487,000 adults aged 19-64 who may not be eligible for Medicare or Medicaid. Hoosier Care Connect serves approximately 80,000 individuals under age 60 who are blind, disabled, wards, or foster children, and PathWays for Aging serves approximately 115,000 seniors aged 60 and older who are eligible for Medicaid and may have limited long-term services and supports needs. The contract term is four years with two optional one-year renewals available at the state's discretion. Contractors must be Indiana-licensed health maintenance organizations, obtain NCQA accreditation by the contract start date or no later than the end of the second full calendar year of operation, establish an administrative office within five miles of the Indiana Government Center in Indianapolis, and maintain key staff residing in Indiana. The Statement of Work specifies comprehensive administrative, clinical, operational, and quality requirements, including detailed staffing position requirements (with identified key staff such as the President/CEO, Chief Financial Officer, Chief Medical Officer, Chief Compliance Officer, and numerous program-specific operational positions), care coordination protocols, member services capabilities, provider network development standards, quality improvement goals, utilization management processes, and program integrity safeguards.

Contractors will receive capitation payments based on prospective member months and are subject to significant financial stability requirements, including maintaining minimum Risk-Based Capital ratios of 300 percent per NAIC standards, obtaining fidelity bond and professional liability insurance, and purchasing commercial reinsurance with attachment points not exceeding $2 million and co-insurance responsibility capped at 20 percent. State fiscal year 2027 capitation rates include $305.42 PMPM (for-profit) and $304.23 PMPM (not-for-profit) for Hoosier Healthwise; rates ranging from $228.72 to $1,936.56 PMPM plus maternity case rates for Healthy Indiana Plan; $1,448.47 PMPM composite rates for Hoosier Care Connect; and $3,468.29 PMPM composite rates for PathWays for Aging, with total estimated base capitation exceeding $4.9 billion for the initial rating period. Contractors are subject to a pay-for-outcomes program withholding 1.85 to 2.25 percent of capitation payments annually from 2029-2034, with estimated recovery of 60 to 70 percent based on performance against HEDIS and outcome measures. The Statement of Work is part of the broader RFP 27-88343, with proposals due November 6, 2026, and a pre-proposal conference scheduled for September 10, 2026. All contractors must comply with comprehensive federal Medicaid managed care regulations under Section 1903(m) and 1932 of the Social Security Act and implementing regulations in 42 CFR 438, while maintaining separate accounting records for Indiana Medicaid lines of business and submitting to detailed readiness review prior to contract implementation across Operations/Administration, Service Delivery, Financial Management, and Systems Management areas.

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Text version

EXHIBIT 1

STATEMENT OF WORK – HEALTHY INDIANA PLAN

TABLE OF CONTENTS

1.0Background13
1.1MCO Investment in Quality15
2.0Administrative Requirements15
2.1State Licensure16
2.2National Committee for Quality Assurance (NCQA) Accreditation16
2.3Administrative and Organizational Structure16
2.3.1Administrative Office17
2.3.2Staffing18
2.3.3Key Staff18
2.3.4Other Required Staff Positions24
2.3.5Additionally Required Staff Positions32
2.3.6Staff Training and Qualifications32
2.4Debarred Individuals33
2.5FSSA Meeting Requirements34
2.6Financial Stability35
2.6.1Solvency35
2.6.2Insolvency and Receivership35
2.6.3Insurance Requirements36
2.6.4Reinsurance36
2.6.5Evidence of Financial Responsibility37
2.6.6Financial Accounting Requirements38
2.6.7Reporting Transactions with Parties of Interest40
2.6.8Compensation41
2.6.9Medical Loss Ratio (MLR)42
2.7Supplemental Payments and State-Directed Payments46
2.7.1Hospital Assessment Fee46
2.7.2Physician Faculty Access to Care (PFAC) Program47
2.7.3Reserved47
2.7.4Physician and Ancillary Minimum Fee Schedule47
2.7.5State-Directed Applied Behavioral Analysis (ABA) Reimbursement47
2.7.6Reserved48
2.7.7Reserved48
2.7.8Reimbursement for Nursing Facilities48
2.8Subcontracts48
2.9Confidentiality of Member Medical Records and Other Information53
2.10Inquiries and Complaints53
2.11Material Change to Operations54
2.12Future Program Guidance54
2.13Conflict of Interest54
2.14Capitation Related to a Vacated Program54
2.15Maintenance of Records55
2.16Maintenance of Written Policies and Procedures55
2.17Participation in Readiness Review55
2.18Dissemination of Information56
2.19Cooperation with the State56
2.20Access to Premises and Information57
2.20.1Access to Premises57
2.20.2Access to and Audit of Contract Records58
2.21Integration and Alignment of Medicare and Medicaid59
2.21.1Reserved60
2.21.2Reserved60
2.22Compliance with Applicable Laws, Rules, and Regulations60
3.0Covered Benefits and Services60
3.1Self-referral Services62
3.2Drug Coverage64
3.2.1Drug Rebates65
3.2.2SUPDL and Formulary Requirements66
3.2.3DUR Board and MHQAC Reporting Requirements68
3.2.4Dispensing and Monitoring Requirements69
3.2.5E-Prescribing71
3.2.6Carve-Out of Select Drugs71
3.2.7340B Drug Pricing Program72
3.2.8SUPPORT Act Compliance72
3.2.9Reserved73
3.2.10Reserved73
3.2.11Pharmacy Benefit Administrator Contracting73
3.2.12Reserved74
3.3Emergency Services74
3.3.1Post-Stabilization Services77
3.3.2Emergency Room Services Co-Payment77
3.4Smoking Cessation and Tobacco Dependence Treatment78
3.5Behavioral Health79
3.5.1Behavioral Health Care Services80
3.5.2Behavioral Health Provider Network81
3.5.3Behavioral Health Integration and Information Exchange82
3.5.4Institution for Mental Disease (IMD)84
3.5.5Carved-in Behavioral Health Services85
3.6Prevention and Wellness86
3.6.1Prevention and Wellness Plan86
3.6.2Prevention and Wellness Program87
3.7Reserved88
3.8Reserved88
3.9Reserved88
3.10Reserved88
3.11Housing88
3.12Medical Equipment88
3.13Opioid Treatment Program (OTP)89
3.14Dental Services90
3.15Non-Emergency Medical Transportation Services90
3.15.1NEMT Communications91
3.15.2NEMT Brokers91
3.16Diabetes Supplies Coverage91
3.17Service Delivery Innovation91
3.18Carved-out Services92
3.18.1Reserved92
3.18.2Reserved92
3.19Excluded Services92
3.19.1Psychiatric Treatment in a State Hospital93
3.19.2Reserved93
3.19.3Reserved93
3.19.4Reserved93
3.19.5Reserved93
3.19.6Long-Term Care in a Nursing Facility93
3.19.7Psychiatric Residential Treatment Facility (PRTF) Services93
3.19.81915(c) Home and Community-Based Services (HCBS)94
3.19.9Reserved94
3.19.10Reserved94
3.20Continuity of Care94
3.20.1Continuity of Care for Non-Pharmacy Authorizations95
3.20.2Continuity of Care for Pharmacy Authorizations95
3.20.3Continuity of Care for Providers (Out-of-Network Coverage)96
3.20.4Continuity of Care Claims Payment and Financial Responsibility97
3.20.5Pharmacy Claims and Manufacturer Rebate Responsibility98
3.21Out-of-Network Services98
3.21.1Reserved99
3.22Enhanced Benefits99
3.23Residential Substance Use Disorder (SUD) Services100
3.24Inpatient Hospitalization Notification100
3.25Early and Periodic Screening, Diagnosis and Treatment (EPSDT) Services101
3.26Reserved101
3.26.1Reserved101
3.26.2Reserved101
3.26.3Reserved101
3.26.4Reserved102
3.26.5Reserved102
3.27Other Covered Benefits and Services102
3.28Hospice Services102
3.29Reserved103
3.29.1Reserved103
3.29.2Reserved103
3.29.3Reserved103
3.29.4Reserved103
3.30Medicaid Payor of Last Resort103
3.30.1Medicare Benefits103
3.30.2Veterans Benefits103
3.30.3Social Security Disability Insurance (SSDI) and Social Security Income (SSI)104
3.31Home Health104
4.0Care Coordination104
4.1Care Coordination Program Overview104
4.2Risk Stratification Processes and Evidence-Based Care Algorithms106
4.2.1Risk Stratification Considerations for Complex Care Management107
4.2.2Risk Stratification Considerations for Behavioral Health108
4.2.3Risk Stratification Considerations for Special Populations e.g. At-Risk for Negative Outcomes108
4.3Care Coordination Program Plan109
4.4Care Coordination Levels of Service112
4.4.1Health Management112
4.4.2Care Management114
4.4.3Complex Case Management116
4.4.4Reserved123
4.4.5Behavioral Health Care Management123
4.4.6Right Choices Program126
4.4.7Care Coordination Program Considerations for Sub-Populations at Risk of Negative Outcomes127
4.5Reserved128
4.6Health Screening and Assessments128
4.7Comprehensive Health Assessment129
4.8Reassessments131
4.9Reserved131
4.9.1Reserved131
4.10Individualized Care Plans131
4.10.1Health Management Care Plans132
4.10.2Care Management – Individualized Care Plan Requirements133
4.10.3Complex Care Management – Individualized Care Plan Requirements134
4.10.4RCP Care Plans137
4.11Reserved137
4.11.1Reserved137
4.11.2Reserved137
4.11.3Reserved137
4.11.4Reserved137
4.11.5Reserved137
4.11.6Reserved137
4.12Minimum Member Contact137
4.13Transitions138
4.13.1Behavioral Health Transitions of Care138
4.13.2Reserved139
4.13.3Reserved139
4.13.4Inpatient Behavioral Health Hospitalizations139
4.13.5Health and Social Needs Supports139
4.13.6Reserved140
4.13.7Reserved140
4.14Care Coordination Staff Structure, Care Coordinator Requirements and Staffing Model140
4.14.1Care Coordinator Assignment141
4.14.2Care Coordinator Training Requirements141
4.15Reserved142
4.15.1Reserved142
4.15.2Reserved142
4.15.3Reserved143
4.15.4Reserved143
4.15.5Reserved143
4.16Reserved143
4.17Interdisciplinary Care Team (ICT)143
4.17.1Participants143
4.17.2Reserved143
4.17.3Reserved143
4.18Reserved143
4.18.1Reserved143
4.18.2Reserved143
4.18.3Reserved144
5.0Member Services144
5.1Member Marketing, Outreach, and Education Requirements144
5.2Member Enrollment and Contractor Selection146
5.2.1Enrollment and Practice Discrimination146
5.2.2PMP Selection147
5.2.3Provider Network Information148
5.2.4Member Disenrollment148
5.2.5Children with Special Health Care Needs150
5.3Member-Contractor Communications151
5.3.1Member Services Helpline and Nurse Line151
5.3.2Electronic Communications154
5.3.3Twenty-Four (24)-Hour Nurse Call Line155
5.4Member Information, Education, and Outreach155
5.5Member and Stakeholder Education and Engagement157
5.6Member Materials158
5.6.1Member Welcome Packet158
5.6.2Member Handbook159
5.6.3Member ID Card161
5.6.4Member Website162
5.6.5Preventive Care Information163
5.6.6Member Education164
5.6.7Cost and Quality Information164
5.7Member and Potential Member Communications Review and Approval165
5.8Redetermination Assistance166
5.9Member-Provider Communications166
5.10Member Rights167
5.11Additional Information Available Upon Request168
5.12Procedures Regarding Potential Abuse, Neglect, and Exploitation (ANE) of Vulnerable Populations170
5.12.1Contractor Responsibility170
5.12.2ANE Policies and Procedures170
5.13Member Inquiries, Grievances & Appeals171
5.13.1Contractor Grievance and Appeals Policies173
5.13.2Inquiry Processing Requirements174
5.13.3Grievance Processing Requirements175
5.13.4Appeals Processing Requirements176
5.13.5External Review by Independent Review Organization177
5.13.6State Fair Hearing Process178
5.13.7Continuation of Benefits Pending Appeal & Reinstatement of Benefits179
5.13.8Member Notice of Action & Grievance, Appeal and Fair Hearing Procedures180
5.13.9Recordkeeping Requirements of Grievances and Appeals180
5.13.10Reserved181
5.14Oral Interpretation Services181
5.15Access and Cultural Considerations181
5.16Advance Directive Information181
5.17Member Cost-Sharing Limits182
6.0General Provider Network Requirements183
6.1Network Development184
6.1.1General Network Development and Management Plan185
6.1.2Access to Culturally and Linguistically Competent Providers186
6.2Network Composition Requirements186
6.2.1Facilities189
6.2.2Primary Medical Providers (PMP)189
6.2.3Specialist and Ancillary Providers191
6.2.4Pharmacy Services193
6.2.5Non-Psychiatrist, Non-Substance Use Disorder (SUD) Behavioral Health Providers193
6.2.6Applied Behavior Analysis (ABA)193
6.2.7SUD Providers194
6.2.8Dental Providers194
6.2.9Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs)195
6.2.10Indian Healthcare Providers196
6.2.11County Health Departments199
6.2.12Urgent Care Clinics199
6.2.13Dialysis Treatment Center199
6.2.14Non-emergency Medical Transportation Providers199
6.2.15Physician Extenders199
6.2.16Reserved200
6.2.17Reserved200
6.2.18Reserved200
6.3Provider Accessibility200
6.4Reserved201
6.5Provider Enrollment and Disenrollment201
6.5.1Provider Network Change Procedures203
6.5.2Member Notices for Provider Network Terminations203
6.5.3Termination by Provider Type204
6.5.4Termination and Member Notice Documentation204
6.6Provider Credentialing205
6.7Provider Referrals206
6.8Provider Agreements207
6.9Medical Records208
6.10Provider Education and Outreach210
6.10.1Provider Communications Review and Approval210
6.10.2Provider Policy and Procedures Manual211
6.10.3Provider Dispute Resolution213
6.10.4Reserved215
6.10.5Education for Healthy Indiana Plan Providers215
6.11Contractor Communications with Providers215
6.11.1Provider Website216
6.11.2Provider Newsletters217
6.11.3Provider Welcome Letter217
6.11.4Provider Services Helpline217
6.11.5IHCP Roadshows and Seminars218
6.12Payment for Health Care-Acquired Conditions and Provider-Preventable Conditions218
6.13Member Payment Responsibility219
6.14Provider Directory220
7.0Quality Improvement Goals222
7.1Quality Management and Improvement Program222
7.1.1Quality Management and Improvement Committee and Scope225
7.1.2Quality Management and Improvement Program Requirements226
7.1.3Annual Quality Management and Improvement Program Work Plan and External Quality Review229
7.1.4Staff and Delegation of Quality Program Activities230
7.1.5Quality Management and Improvement Committees230
7.1.6Annual Quality Management and Improvement Program Evaluation and Update231
7.1.7Annual Quality Management and Improvement Program Workgroup232
7.1.8Information System & Data Collection to Support Quality232
7.1.9External Quality Review234
7.1.10Publication of Quality Performance Reports234
7.1.11HEDIS Audit234
7.1.12Waiver Assurances234
7.1.13Reserved235
7.2Surveys235
7.2.1Consumer Assessment of Healthcare Providers and Systems (CAHPS)235
7.2.2Reserved237
7.2.3Reserved237
7.2.4Provider Surveys237
7.2.5Additional Surveys237
7.3Value Based Payment (VBP)237
7.3.1VBP Program Design237
7.3.2VBP Program Participation237
7.3.3VBP Metrics and Reporting238
7.4Pay-for-Outcomes Quality Programs238
7.5Provider Incentive Programs239
7.5.1Provider Feedback Reporting and Technical Assistance240
7.5.2Technical Assistance Components240
7.5.3Reserved240
7.6Member Incentive Programs240
7.6.1Required Member Incentives241
7.6.2Optional Member Incentives241
7.6.3Notification of Pregnancy (NOP) Incentives242
7.7Utilization Management Program242
7.7.1Utilization Management Staffing and Training244
7.7.2Medical Service and Pharmacy Prior Authorization245
7.7.3Reserved248
7.7.4Reserved248
7.7.5Authorization of Services and Notices of Actions248
7.7.6Authorization Systems and Technology252
7.7.7Referral Requirements253
7.7.8Objection on Moral or Religious Grounds254
7.7.9Utilization Management Committee254
8.0Program Integrity255
8.1Program Integrity Plan258
8.2Program Integrity Operations260
8.3Program Integrity Reporting263
8.4Program Integrity Overpayment Recovery264
8.5Auditing Program Integrity Operations265
8.6Reserved266
9.0Information Technology (IT) Systems266
9.1Testing with the State267
9.2Master Test Plan267
9.3Business Contingency and Disaster Recovery Plans270
9.4Member Enrollment Data Exchange272
9.5Provider Network Data272
9.6Health Information Technology and Interoperability273
9.7Claims Processing276
9.7.1Claims Processing Capability276
9.7.2Compliance with State and Federal Claims Processing Regulations277
9.7.3Claims Payment Timelines278
9.7.4Rate Update Timeliness279
9.7.5Medicaid National Correct Coding Initiative (NCCI)279
9.7.6Claims System Audits280
9.7.7Claims System Changes280
9.8Encounter Data Submission280
9.8.1Definition and Uses of Encounter Data281
9.8.2Reporting Format and Batch Submission Schedule282
9.8.3Encounter Claims Quality283
9.9Coordination of Benefits and Third-Party Liability284
9.9.1Reserved285
9.9.2Reserved285
9.9.3Collection and Reporting285
9.9.4Cost Avoidance286
9.9.5Retroactive Medicare Coverage287
9.9.6Cost Avoidance Exceptions287
9.9.7TPL Special Circumstances287
9.10Electronic Visit Verification (EVV) Requirements287
10.0Performance Reporting and Incentives288
10.1Administrative and Financial Reports289
10.2Member Service Reports289
10.3Network Development Reports290
10.4Provider Service Reports290
10.5Quality Management Reports290
10.6Utilization and Authorization Reports290
10.7Claims Reports290
10.8Reserved291
10.9CMS Reporting291
10.10Healthy Indiana Plan Reports291
10.11Unclaimed Refunds or Property Report291
11.0Failure to Perform/Non-compliance Remedies292
12.0Termination Provisions292
12.1Contract Terminations292
12.1.1Termination by the State for Contractor Default293
12.1.2Termination for Financial Instability294
12.1.3Termination for Failure to Disclose Records294
12.1.4Termination by the Contractor294
12.2Termination Procedures295
12.3Contractor Responsibilities Upon Termination or Expiration of the Contract296
12.4Damages298
12.5Assignment of Terminating Contractor’s Membership and Responsibilities299
12.6Refunds of Advanced Payments299
12.7Termination Claims299
13.0Healthy Indiana Plan Design and Member Eligibility299
13.1Eligibility300
13.1.1MCO Selection300
13.1.2Work Requirements301
13.2Personal Responsibility and Cost-sharing303
13.3Healthy Incentives304
13.4Medically Frail304
13.4.1Identification of Medically Frail304
13.4.2Care Coordination for Medically Frail305
13.4.3Medically Frail Status Review305
13.5Pregnancy Coverage under Healthy Indiana Plan305

I. EXECUTIVE SUMMARY

This Statement of Work is part of a Contract to provide statewide, risk-based managed care services to Medicaid beneficiaries enrolled in the State of Indiana’s Healthy Indiana Plan (HIP) program. The State is looking to contract on a statewide basis with proven managed care organizations (MCOs) with a demonstrated capacity to actively manage care for a low-income population.

Because Healthy Indiana Plan is financed in part by federal Medicaid funds, the Contractor must meet all applicable requirements of Medicaid managed care organizations under Section 1903(m) and 1932 of the Social Security Act, as well as the implementing regulations set forth in 42 CFR 438, which defines requirements for Medicaid managed care programs. The Contractor must also ensure that its network providers, including out-of-state providers, enroll in the Indiana Health Coverage Programs (IHCP) before they begin providing health care services to members. Further information about IHCP provider enrollment is located at:

https://www.in.gov/medicaid/providers/provider-enrollment/become-a-provider/

Unless otherwise indicated, the requirements set forth in this Statement of Work apply to the Contractor’s responsibilities under the Healthy Indiana Plan program. Definitions for terms cited throughout the Statement of Work are listed in Exhibit 5 Definitions unless otherwise specified.

II. BACKGROUND AND CURRENT STATE

Background

The Indiana Family and Social Services Administration (FSSA) Office of Medicaid Policy and Planning (OMPP) maintains the five (5) Medicaid programs described below. For purposes of this Statement of Work, the term “FSSA” shall refer to the agency and its divisions, including, but not limited to OMPP.

As the State continues to evaluate and design Medicaid benefits, the State reserves the right to add additional populations not currently outlined in this Contract into its managed care programs.

Hoosier Healthwise

Hoosier Healthwise is a Medicaid program that helps approximately five hundred and eighty-nine thousand (589,000) Hoosiers. The program’s aim is to provide comprehensive health care coverage for children up to age nineteen (19) and pregnant individuals.

The Contractor must perform the administrative functions of a typical insurer, as well as address the unique challenges of low-income children and families, including managing and integrating care along the continuum of health care services.

Healthy Indiana Plan

FSSA has maintained the Healthy Indiana Plan program since 2008. Healthy Indiana Plan is one of the Medicaid programs that helps over four hundred and eighty-seven thousand (487,000) Hoosiers. Healthy Indiana Plan aims to provide comprehensive health care coverage for low-income adults aged nineteen to sixty-four (19 to 64) that may not be otherwise eligible for Medicare or Medicaid and most pregnant women covered by Medicaid.

The State of Indiana intends to implement modifications to the Healthy Indiana Plan (HIP) program whereby all non‑expansion adult members, including pregnant women, will be transitioned to the Hoosier Healthwise Medicaid Managed Care program. Following these changes, the Healthy Indiana Plan will be designated exclusively for Medicaid expansion adults. The State will undertake all necessary steps to effectuate this transition in accordance with Federal and State requirements. The Healthy Indiana Plan and Hoosier Healthwise Statement of Work documents will be updated to reflect these changes prior to implementation of the program change.

The Healthy Indiana Plan program seeks not only to provide health coverage to an uninsured population, but to improve health, promote prevention and encourage healthy lifestyles.

Hoosier Care Connect

FSSA has maintained the Hoosier Care Connect program since 2015, and it currently serves approximately eighty thousand (80,000) Hoosiers. Hoosier Care Connect is a coordinated care program for Indiana’s Medicaid members under the age of sixty (60) meeting the following criteria:

· Blind individual,

· Individual with a disability,

· Wards, foster children, former foster children and children receiving adoption assistance,

· Are not eligible for Medicare, or

· Are not on a 1915(c) Medicaid waiver.

Through the Hoosier Care Connect program, FSSA seeks to improve the quality of care and health outcomes for the identified population. This includes improved clinical and functional status, enhanced quality of life, improved member safety, and enhanced member autonomy and adherence to treatment plans.

PathWays for Aging

FSSA has managed the PathWays program since inception in 2024. Pathways serves approximately one hundred and fifteen thousand (115,000[footnoteRef:2]) Hoosiers. Indiana’s PathWays program is a statewide coordinated care program for Indiana’s Medicaid members who are sixty (60) years of age and older and are eligible for Medicaid on the basis of age, blindness, or disability and have limited income and resources. All individuals who are sixty (60) years of age or older in the target eligibility categories will be included unless they meet an exclusion, as specified in Exhibit 3 Program Description and Covered Benefits. Members include members who have a full Medicare benefit and those who are receiving long-term services and supports (LTSS) in a home or community-based setting. LTSS includes Home and Community Based Services (HCBS) which are intended to support individuals who have functional limitations and/or chronic illnesses that have the primary purpose of supporting the ability of the member to live or work in the setting of their choice. HCBS services include, but are not limited to, in-home personal care, adult day centers, assisted living, and caregiver support. [2: The enrollment figures provided in this Statement of Work are current figures only. Enrollment in the programs may increase or decrease in the future based upon federal policies, program priorities, available funding, etc.]

In developing PathWays, FSSA seeks to achieve the following:

· Ensure more Hoosiers can choose to age at home and simplify access to HCBS

· Appropriately divert individuals from long-term nursing facility stays in accordance with a person-centered approach through high-quality care coordination, coordinated care across the delivery system and care continuum, including across Medicaid and Medicare for dually eligible members, and taking into account physical health, behavioral health, and social services

Fee-for-Service

Fee-for-Service (FFS) Medicaid provides full health coverage to individuals eligible for Medicaid and are an excluded population from managed care enrollment, such as individuals receiving intellectual and developmental disability services through the Division of Disability, Aging, and Rehabilitation Services (DDARS); American Indian and Alaskan Natives; individuals under the age of sixty (60) who are Medicaid and Medicare (dual) eligible; and individuals residing in institutional settings. FFS Medicaid serves approximately two hundred and forty thousand (240,000) Medicaid eligible individuals. FFS Medicaid benefits include all services that are covered under Package A-Standard Plan.

III. SCOPE OF WORK

a. OBJECTIVES OF ENGAGEMENT

MCO Investment in Quality

Across all Indiana coordinated programs, FSSA has the triple aim of:

· Make Indiana Healthy Again

· Partner with plans dedicated to the State of Indiana

· Ensure fiscal integrity and responsibility of Medicaid programs

The Contractor must ensure compliance to all program requirements and guidance issued by the State including, but not limited to, each program’s Policies and Procedures Manual as updated and amended periodically.

The State expects Contractors to align their resources toward achieving improvement in the goal areas. Examples include:

· Member and provider outreach and education efforts supporting the goals

· Enhanced Benefits offered by the Contractor should be intentionally selected to support quality goals

· Member and provider incentives and Value-Based Purchasing arrangements designed to support the goals

Administrative Requirements

The Contractor must comply with all applicable Federal and State laws, regulations and executive orders.

State Licensure

· Prior to the Contract effective date, and as verified in the readiness review, the Contractor must be an Indiana-licensed health maintenance organization (HMO).

The Contractor and all subcontractors must use clinicians licensed by Indiana and follow all requirements contained within the Contract (e.g., Prior Authorization/Utilization Management (PA/UM) criteria; claims processing; encounter data submission; etc.), regardless of geographic location. As required by IC 12-15, subcontractors must verify that providers hold a current unrestricted Indiana license even if the Contractor is based in another state.

National Committee for Quality Assurance (NCQA) Accreditation

The Contractor must be accredited by the National Committee for Quality Assurance (NCQA) on or before the Contract start date. In the event the Contractor is not accredited on or before the Contract start date, the Contractor must begin the accreditation process and obtain accreditation at the earliest time that the NCQA allows. When accreditation standards conflict with the standards set forth in the Contract or State law, the Contract or State law prevails unless the accreditation standard is more stringent.

If the Contractor is accredited as of the start date of the agreement, the Contractor must maintain accreditation throughout the term of this agreement. If not already NCQA accredited as of the start date of this agreement, the Contractor must obtain their health plan accreditation no later than the end of the second full calendar year of operation and must maintain accreditation for the term of this agreement.

The Contractor must submit to FSSA the final Accreditation Report for each accreditation cycle within ten (10) business days of receipt of the report. The Contractor must submit to FSSA updates of accreditation status, based on annual HEDIS scores, within ten (10) days of receipt.

Per 42 CFR 438.332(b), the Contractor must authorize NCQA to provide the State with a copy of its most recent accreditation review including: its accreditation status, survey type, and level (as applicable); recommended actions or improvements, corrective action plans, and summaries of findings; and the expiration date of the accreditation. As required by 42 CFR 438.332(c), FSSA shall publish on its website the accreditation status of each Contractor.

Administrative and Organizational Structure

The Contractor shall maintain an administrative and organizational structure that supports effective and efficient delivery of integrated services to members. The organizational structure must demonstrate a coordinated approach to managing the delivery of health care services to its Healthy Indiana Plan members. This structure must support collection and integration of data across the Contractor’s delivery system and internal functional units to accurately report the Contractor’s performance. The Contractor must also have policies and procedures in place that support the integration of financial and performance data and comply with all applicable federal and state requirements.

Prior to the Contract effective date, FSSA will provide a series of orientation sessions to assist the Contractor in developing its internal operations to support the requirements of the Contract (i.e., data submission, data transmissions, reporting formats, etc.).

The Contractor must have in place sufficient administrative and clinical staff and organizational components to achieve compliance with Contract requirements and performance standards. The Contractor must manage the functional linkage of the following major operational areas:

· Administrative and fiscal management

· Member services

· Provider enrollment and services

· Case management

· Member information, education, and outreach

· Network development and management

· Quality management and improvement

· Utilization management

· Clinical assessment, health management, care management and complex case management

· Special investigations and waste, fraud and abuse detection

· Behavioral and physical health

· Information Technology systems

· Performance data reporting and encounter claims submission

· Claims payments

· Grievances and appeals

· Vendor management

The Contractor’s organizational and operational structure must be capable of fulfilling all contract requirements. Furthermore, the Contractor and Contractor’s operations must be located inside of the United States. Per 42 CFR 438.602(i), no claims paid by the Contractor to a network provider, out-of-network provider, subcontractor or financial institution located outside of the U.S. are considered in the development of actuarially sound capitation rates.

Administrative Office

The Contractor must establish and maintain a business office or work site within five (5) miles of the Indiana Government Center in Indianapolis, Indiana where it is expected that, at minimum, the executive leadership team, and preferably all key staff will perform the majority of their duties, as well as ensuring a significant portion of the Contractor’s operations are based there. The Contractor must ensure the location of operational functions outside of Indiana does not compromise the delivery of integrated services and a seamless experience for members and providers. All staff working on the State of Indiana’s business must be available to the State at the Indiana Government Center or at the Contractor’s Indianapolis, Indiana business office at the discretion of the State.

The Contractor must provide sufficient on-site meeting space that is private and allows the state to perform on-site reviews, audits, or other oversight activities.

The Contractor must be responsible for all costs related to securing and maintaining the facility for interim start-up support and the subsequent operational facility.

Staffing

The Contractor must have in place qualified administrative and clinical staff as well as sufficient organizational components to comply with all program requirements and standards. The Contractor must maintain a high level of Contract performance and data reporting capabilities regardless of staff vacancies or turnover. The Contractor must have an effective method to address and minimize staff turnover (e.g., cross training, use of temporary staff or consultants, etc.) as well as processes to solicit staff feedback to improve the work environment. Staff designated for this specific Medicaid program must have experience with adults’ mental health and addiction services.

All key staff must reside in Indiana, and all other staff must perform the majority of their work within Indiana unless explicitly exempted by the Contract. It is expected that key staff must carry out the majority of their daily responsibilities from the Indianapolis location. The Contractor must provide documentation upon request to verify compliance with these requirements.

The Contractor must ensure the location of any staff functions outside of Indiana does not compromise the delivery of integrated services and a seamless experience for members and providers. Additionally, the Contractor must be responsible for ensuring all staff functions conducted outside of the state are readily reportable to FSSA at all times to ensure such location does not hinder the State’s ability to monitor the Contractor’s performance and compliance with Contract requirements. The Contractor must receive State approval for functions to be conducted outside of Indiana and identify how out-of-state staff will be supervised to ensure compliance with Contract requirements. Indiana-based staff must maintain a full understanding of the operations conducted out-of-state, and must be prepared to discuss these operations with FSSA upon request, including during unannounced FSSA site visits.

The Contractor must have position descriptions for the positions discussed in this section that include the responsibilities and qualifications of the position such as, but not limited to: education (e.g., high school, college degree or graduate degree), professional credentials (e.g., licensure or certifications), work experience, membership in professional or community associations, etc.

The State of Indiana maintains the right and authority to approve or deny all Contractor staff, including subcontractor and vendor staff from working on the State’s business. Individuals the State denies must have their access to State of Indiana information terminated within one (1) hour of notification to the Contractor.

Key Staff

The Contractor must employ the key staff members listed below. Contractor must employ qualified staff to achieve compliance with contractual requirements and performance metrics.

The Contractor must maintain a backup personnel plan, including a discussion of the staffing contingency plan for (i) the process for replacement of personnel in the event of a loss of key staff or others before or after signing a Contract; (ii) allocation of additional resources to the Contract in the event of an inability to meet a performance standard; (iii) replacement of staff with key qualifications and experience and new staff with similar qualifications and experience; (iv) the time frame necessary for obtaining replacements; and (v) the method of bringing replacement or additions up to date regarding the Contract; and (vi) how the Contractor will keep the State aware of the process for replacing key staff or others starting from the initial loss of staff, through the replacement process, and finishing with State approval before the finalization of a replacement.

Per 42 CFR 455.104(b)(4), the Contractor must submit the name, address, date of birth, and SSN of any managing employee of the Contractor. A managing employee is defined as a general manager, business manager, administrator, director, or other individual who exercises operational or managerial control over, or who directly or indirectly conducts the day-to-day operation of an institution, organization, or agency. The plan president/CEO is the final decision maker on day-to-day operations of an organization. The Contractor must submit the federally required personal information of their President/CEO upon the State’s request.

The Contractor must submit to FSSA for approval all initial and replacement key staff prior to their assignment to the Healthy Indiana Plan Program. With reasonable notice and a statement of the reasons for the request, FSSA shall have the right to require that the Contractor remove any individual (whether or not key staff) from assignment to the program. If the Contractor desires to change the individual in a key staff position at any point in the Contract, the Contractor must submit the request and the resume(s) of the candidate(s) to FSSA for approval prior to making the change.

Except in the circumstance of the unforeseeable loss of a key staff member’s services, the Contractor must provide written notification to FSSA of anticipated vacancies of key staff within five (5) business days of receiving the key staff person’s notice to terminate employment or five (5) business days before the vacancy occurs, whichever occurs first. At that time, the Contractor must present FSSA with an interim plan to cover the responsibilities created by the key staff vacancy. Likewise, the Contractor must notify FSSA in writing within five (5) business days after a candidate’s acceptance to fill a key staff position or five (5) business days prior to the candidate’s start date, whichever occurs first. A candidate cannot officially start their role until FSSA has approved them as a replacement.

In addition to attendance at vendor meetings, all key staff must be accessible to FSSA and its other program subcontractors via telephone, voicemail and electronic mail systems. As part of its annual and quarterly reporting, the Contractor must submit to FSSA an updated organizational chart including e-mail addresses and phone numbers for key staff. An updated organizational chart must be provided within ten (10) business days of a key staff member being replaced.

During readiness review, the Contractor must submit a comprehensive staffing plan. Prior to the launch of this contract, and if needed on an ad hoc basis, the Contractor will be required to submit a final staffing plan or changes to their staffing plan to the state for review.

The key staff positions required across the four programs include:

Plan President/CEO

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Has full and final responsibility for plan management and compliance with all provisions of the contract. Has clear authority over the general administration and day-to-day activities and financial decisions including rate negotiations.

Chief Financial Officer

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Oversee the budget and accounting systems of the contractor. At a minimum, is responsible for ensuring that the Contractor meets the State's requirements for financial performance and reporting.

Chief Compliance Officer

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Responsible for developing and implementing a compliance program and policies and procedures designed to ensure compliance with all contract requirements. Must maintain a current knowledge of federal and state legislation, legislative initiatives and regulations that may impact Indiana Medicaid. Is the primary liaison with the State (or its designees) to facilitate communications between FSSA, the State’s contractors and the Contractor’s executive leadership and staff.

Chief Information Officer

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Must have the necessary training and experience in information systems, data processing, and data reporting to oversee all information systems functions supporting the state. Oversee the Information Technology (IT) systems and serve as a liaison between the Contractor and the State fiscal agent or other FSSA contractors regarding encounter claims submissions, capitation payment, member eligibility, enrollment and other data transmission interface and management issues. Responsible for ensuring all program data transactions are in compliance with the terms of the Contract and accountable for the overall IT security of systems and data used in support of the work described in this SOW. Required to attend all Technical Meetings called by the State. Ensure that member and provider facing websites and portals are easily navigable by the general public, members, and providers by obtaining and incorporating feedback from these stakeholders. Ensure that Information Technology projects are implemented timely and correctly.

Chief Medical Officer (CMO)

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Must be a physician with a current Indiana license. Must have at least three (3) years of training in a medical specialty. Responsibilities include but are not limited to: a) Ensures MCO makes timely medical decisions; b) Leads all major clinical, population health management, and quality improvement components of the MCO; c) Develops, implements, and interprets medical policies and procedures, including service authorizations, claims review, discharge planning, and medical reviews performed through the MCO grievance and appeal system; d) Leads the administration of all medical management activities of the MCO; and e) Serves as the director of utilization management committee and chairperson or co-chair of the Quality Assessment and Performance Improvement (QAPI) committee.

Behavioral Health Administrative Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Must hold an Indiana license as a MD, DO, APRN, Psychologist, LCSW, or other licensed health care professional, with a minimum of five (5) years’ experience in the provision of mental illness and substance use disorders services. Must demonstrate knowledge and understanding of Indiana's behavioral health system that includes mental health, alcohol and drug addiction, and other populations. Ensures access to behavioral health services. Promotes preventive behavioral health strategies. Identify and coordinate assistance for member needs specific to behavioral health. Participates in management and program improvement activities. Enhanced integration with primary care and coordination of behavioral health services. Must have experience with MRO and 1915(i) services, including developing policies and procedures for coordinating services.

Population Health Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Holds a master's degree or other advanced degree in nursing, social work, health services research, health policy, information technology, or other relevant field. Has at least five (5) years of progressively responsible professional experience in population health, service coordination, ambulatory care, community public health, case or care management, or coordinating care across multiple settings and with multiple providers. Oversee the MCO's strategic design, implementation, and evaluation of population health initiatives based on a deep understanding of scientific population health principles. Liaison with State and other contracted MCOs on population health strategies. Develop and implement operational plans that address the market opportunities/challenges and align with the established population health goals.

Utilization Management Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Must be a registered nurse or physician with a current Indiana license. Be certified as a Certified Professional in Health Care Quality by the NAHQ and/or CHCQM by the American Board of Quality Assurance and Utilization Review Providers. Report through the Chief Medical Officer. Oversees the day-to-day activities of the UM program. Develops written policies and procedures regarding authorization of services and monitors to ensure compliance. Ensure the consistent application of review criteria for authorization decisions. Evaluate under and over utilization information for impact on member quality of care and outcomes, including access to care. Directs staff performance regarding authorizations, medical necessity determinations, concurrent review, retrospective review, appropriate utilization of health care services, continuity of care, care coordination and other clinical and medical management programs. Works with the Special Investigation Unit (SIU) to ensure that service billing and utilization issues are documented and reported to the SIU, and matters requiring SIU review or investigation are timely to enable recovery of overpayments or other appropriate action.

Quality Improvement Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Must be a registered nurse or physician with a current Indiana license or be certified as a Certified Professional in Health Care Quality by the NAHQ and/or CHCQM by the American Board of Quality Assurance and Utilization Review Providers. Have experience in quality management and quality improvement as specified in 42 CFR 438.206 through 438.370. Reports directly to the CMO. Develop and manage the MCO's portfolio of improvement projects, including ensuring impact at a population level and identifying and prioritizing initiatives to align with the State's Quality Strategy. Oversee MCO improvement teams and coordinate QI training for MCO staff. Responsible for directing the activities of the Contractor’s quality management staff in monitoring and auditing the Contractor’s health care delivery system, including, but not limited to, internal processes and procedures, provider network(s), service quality and clinical quality. Assist the Contractor’s Compliance Officer in overseeing the activities of the Contractor’s operations to meet the State’s goal of providing health care services that improve the health status and health outcomes.

Chief Operating Officer

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Responsible for oversight of all day-to-day operations of the healthcare plan operations. Has oversight of all functional operational areas within the healthcare plan.

Pharmacy Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Must be a registered pharmacist licensed in Indiana with experience in state and federally funded health care programs, preferably with pharmacy benefit management experience. Oversees the MCO's responsibilities related to pharmacy benefits. Coordinates with the State to provide input in the review of new drugs, changes to PDL and authorization criteria. Oversees the medication therapy management programs. Monitors, manages, and coordinates the care of the MCO's members as it relates to utilization of prescription drugs. Must participate in meetings such as the State's Drug Utilization Review (DUR) Board meetings and the Mental Health Quality Advisory Committee (MHQAC), and any other state required meetings.

Grievance and Appeal Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Ensures grievance and appeals system functions as an essential process to remediate member access to care and quality concerns, and as a source of information that serves as indicators of health care system issues and concerns. Required to share and review grievance and appeal data with other operational areas to develop and monitor interventions to correct deficiencies. Develops and implements policies and procedures that ensure appropriate action to resolve and close grievance and appeals in a timely manner as required in the contract.

Member Services Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Must be located in Indiana. Is responsible for leading and coordinating communications with members, processes for resolving member inquiries and problems and meeting member service requirements. At a minimum, be responsible for communications with members, helpline performance, member electronic communications, member outreach and education, member website, development, approval, and distribution of member materials. May include members impacted by population health programs on the project team to identify member-perceived barriers and to assist with the design and testing of interventions impacting members. Is responsible for ensuring that member perspectives and feedback are included in evaluating programmatic success.

Network Development Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Responsible for network development, network sufficiency, and network reporting functions. Ensures network adequacy and appointment access, develops network resources in response to identified unmet needs and oversees network provider workforce development activities. Responsible for provider recruitment, provider contracting, and provider credentialing. Oversees the process of providing information to the state fiscal agent regarding the contractor's provider network. Responsible for ensuring all provider network standards are compliant with contract requirements and state and federal requirements.

Provider Services Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Acts as the primary point of accountability to the State to address escalated provider issues. At a minimum, is responsible for provider helpline and helpline performance, facilitating provider claims dispute process, developing and distributing the provider manual and education materials, and developing provider outreach. Is responsible for ensuring provider website and provider directory are compliant with contract requirements.

Special Investigation Unit Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Must be located in Indiana. Is responsible for directing the activities of Special Investigation Unit staff, attending meetings with FSSA and reducing or eliminating wasteful, fraudulent, or abusive healthcare billings and services. Responsible to coordinate the timeliness, accuracy, and completeness of all suspected or confirmed instances of waste, fraud, and abuse referrals to the OMPP PI Section. The SIU Director must report to the Compliance Officer and meet with the OMPP Program Integrity (OMPP PI) section as directed by the OMPP PI Section. The SIU Director must be a subject matter expert in Medicaid program integrity and hold qualifications similar to those of state program integrity section managers. Must have experience in analyzing health care claims and coding.

Dental Director

· Dedicated full-time to the Contractor’s Indiana Medicaid product lines

· Must be an Indiana licensed Dentist. Develops and leads the MCO's dental strategy to meet state requirements, incorporating oral health prevention and treatment into the MCO's population health efforts and the delivery of holistic, person-centered, integrated care. Ensures dental benefit operates in compliance with standards of dental care. Oversees MCO performance on dental measures. Oversees utilization management of dental benefits to ensure members receive timely, appropriate, and medically necessary dental care.

Program Administrator

· Dedicated full-time to each IN Medicaid Managed Care Program individually

· Must have at least one (1) position assigned to each of the Medicaid programs. Serves as the primary contact for all operational issues. Coordinates the tracking and submission of contract deliverables. Ensures the program is meeting the State's goals.

Other Required Staff Positions

In addition to the required key staff described in Section 2.3.3, the Contractor must employ those additional staff necessary to ensure the Contractor’s compliance with the State’s performance requirements. Required staff include but are not limited to:

Clinical & Quality

Behavioral Health Clinical Manager

· Dedicated full-time to each IN Medicaid Managed Care Program individually

· Must have at least one (1) Behavioral Health Clinical Manager dedicated full-time to each program. Each assigned position must have specific experience for the population served under the program. Requires collaboration to ensure coordination of physical and behavioral health. Must have experience working with community mental health centers, MRO services, 1915(i), ABA, and CCBHC.

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