For-Profit Firm To Handle Administration of Colorado’s CHIP Program

As expected, the for-profit Denver-based Policy Studies Inc. has acquired Child Health Advocates, the not-for-profit organization that handles administrative duties on a contract basis for Colorado's CHIP program, the Denver Rocky Mountain News reports (Perrault, Denver Rocky Mountain News, 4/4). Over the last three years, CHA has managed the CHIP program, called Child Health Plan Plus, but has been criticized for the program's low enrollment and for spending too much money on administrative needs, rather than outreach. By acquiring the business assets of CHA, Policy Studies assumes control of the CHIP contract and will handle outreach, provider network coordination, call center administration and systems development for the program (Kaiser Daily Health Policy Report, 3/27). Karen Reinertson, director of the state Department of Health Care Policy and Financing, said the state has worked with both organizations to ensure that Policy Studies can manage the contract and "meet future needs" (Denver Rocky Mountain News, 4/4).