On March 21, 2019, the Arizona Department of Economic Security (DES) Division of Developmental Disabilities (DDD) awarded UnitedHealthcare Community Plan and Mercy Care managed care organization (MCO) contracts for the new integrated “DDD Health Plans.” The contracts go live on October 1, 2019. The initial contract term will run for three years, followed by options to extend annually for a total contracting term not to exceed 10 years. DDD provides health care to eligible members of the Division and the Arizona Long Term Care System (ALTCS). About 36,000 people with intellectual/developmental disabilities (I/DD) are enrolled in the ALTCS DD Program.

The aggregate contract value has not been released, nor has the estimated value per year. The DDD Health Plans will offer eligible members physical and behavioral health services, Children’s Rehabilitative Services (CRS) and limited long-term services and supports (LTSS) to include skilled nursing facilities; emergency alert services; and physical therapy for members age 21 and older. All other LTSS and support coordination will be provided by DDD. The selected contractors will receive a capitated rate to provide the services.

Currently DDD contracts with three health plans to provide acute care services only for those enrolled in the ALTCS DD Program. The incumbents are Care1st Health Plan Arizona, Inc.; UnitedHealthCare Community Plan; and Southwest Catholic Health Network Corporation, dba Mercy Care Plan. For members requiring behavioral health services, DDD coordinates with the local Tribal/Regional Behavioral Health Authorities (RBHAs) serving the geographic service area. ALTCS-DD members with Children’s Rehabilitative Services (CRS) designations receive services related to their CRS condition through the current CRS contractor, UnitedHealthcare Community Plan.

The new integrated DDD Health Plans are intended to allow better coordination of services and to make the system easier for members and provider organizations to navigate. DDD believes the model will enhance care treatment between provider organizations and will improve member health. DDD released the request for proposals (RFP ADES19-00008322) on June 25, 2018, with responses due on September 17, 2018. DDD did not release information about additional responses. To facilitate the transition to the new integrated plans, DDD will send members letters the week of April 15 and the week of May 13. The letters will describe the new plans, and will explain how members can choose a plan before the October 1, 2019 start date.

Mercy Care currently provides physical health services to approximately 12,000 DDD members in 10 Arizona counties: Maricopa, Pinal, Gila, Pima, Yuma, La Paz, Santa Cruz, Cochise, Graham, and Greenlee. As the Regional Behavioral Health Authority, Mercy Care also delivers behavioral health services to all DDD members in Maricopa County. Currently, UnitedHealthcare Community Plan of Arizona serves more than 18,000 DDD members under its existing DDD contract. UnitedHealthcare also holds a CRS contract. Under the new DDD Health Plan contract, Mercy Care and UnitedHealthcare Community Plan will serve individuals with I/DD in all 15 Arizona counties.

A copy of RFP ADES19-00008322 is available for download at no charge to Premium and Elite OPEN MINDS Circle subscribers at https://www.openminds.com/rfp/arizona-seeks-integrated-health-care-choice-plan-services/. The winning proposals have been requested and will be posted when received.

OPEN MINDS last reported on this topic in “Arizona Issues RFP For Managed Care Plans For Individuals With Developmental Disabilities,” which published on July 22, 2018. The article is available at https://www.openminds.com/market-intelligence/news/arizona-to-implement-new-integrated-managed-care-plans-for-individuals-with-developmental-disabilities/.

For more information on the health plans, contact:

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