Two More HMOs to Open Enrollment to RIte Care Beneficiaries in Deal with Rhode Island
Under a new agreement between the Rhode Island Department of Human Services and a group of insurers, beneficiaries in RIte Care, the state's health insurance program for low- and moderate-income residents, will have a choice between three health plans "for the first time in years," the Providence Journal reports. BlueCHiP, an HMO owned by Blue Cross & Blue Shield of Rhode Island, and UnitedHealthcare of New England have agreed to re-open enrollment and accept new RIte Care members under three-year contracts. As part of the deal, Rhode Island will boost managed care reimbursement rates by up to 10% this year and 6% in each of the next two years. The Journal reports that the third HMO, Neighborhood Health Plan of Rhode Island, which currently "dominates RIte Care," will have to "compete hard" to attract and retain members (Freyer, Providence Journal, 3/5). Currently, Neighborhood is the only open Medicaid health plan in RIte Care (RIte Care Web site, 3/9).
Deal Specifics
BlueCHiP has not accepted beneficiaries in RIte Care since 1994 and has received "criticism for not pulling its weight" in RIte Care after posting financial surpluses. However, under the new payment deal, the HMO has agreed to accept 20,000 new members over the next three years. UnitedHealthcare will accept up to 50,000 new members in the same period. State DHS Director Christine Ferguson said, "People will have a choice of plans. There will be more competition back in the system. Most importantly, all the plans are comfortable and happy to be part of it" (Providence Journal, 3/5).
