Oregon's second largest Medicaid provider has agreed in principle to an Oregon Health Authority (OHA) proposal to continue serving its Medicaid members until January 31, 2018.
FamilyCare Health had notified the Oregon Health Authority last week that it would close its doors effective December 31.
Since then OHA Director Patrick Allen has been meeting with FamilyCare CEO Jeff Heatherington to try to find a solution that would allow the company to stay in business, or to reach an agreement to help OHA with an orderly transition of its 113,000 members to other coordinated care organizations (CCOs).
Thursday afternoon Heatherington accepted OHA's proposal to continue doing business until January 31, 2018, with OHA paying FamilyCare the 2018 capitation rates that were announced in early November. These rates were found to be actuarially sound by two independent reviews.
OHA has also agreed to pay FamilyCare a $5 million fee to help with transition costs during January.
"We are pleased that FamilyCare has agreed to continue serving vulnerable Oregonians for another 30 days," said director Allen. "This will give us more time to transition these members into other coordinated care organizations to ensure that they can continue to see their providers and continue to receive the care they need."
FamilyCare's closure does not affect members' OHP coverage. Their benefits remain in place. OHA's first priority is to ensure OHP members' care and access to medications and treatments are not interrupted.
OHA has begun transferring FamilyCare members to Willamette Valley Community Health, Health Share of Oregon, or Yamhill Community Care. This transition should be completed by February 1.
FamilyCare members with questions can call the Oregon Health Plan Client Services line at 800-273-0557.
OHA Director Patrick Allen will be available to answer media questions at 4 p.m. in the Barbara Roberts Human Services Building, Room 137 D, 500 Summer St. NE, Salem. Reporters who want to join by phone can call 888-273-3658, access code 6925414.
Source: Oregon Health Authority