Pennsylvania Releases HealthChoices RFA

On October 15, 2019,the Pennsylvaia Department of Human Services (DHS) released the Pennsylvania HealthChoices Physical Health Medicaid Managed Care request for applications (RFA). Reflecting the current framework, Medicaid managed care organizations (MCOs) will serve the five HealthChoices zones covering all 67 counties: Southeast, Southwest, LehighCapital, Northwest, and Northeast. Contracts are worth nearly $13 billion. Pennsylvania failed to implement new contracts and negated awards from 2016 as well as the awards from the 2017 rebid. As a result, the HealthChoices program is currently operating under extensions of contracts originally awarded in 2012. The most recent awards in early 2017, which would have been for a three-year, $12 billion contract, were protested by Aetna, UnitedHealthcare, and AmeriHealth Caritas, leading the state to cancel the RFA and reissue the procurement. Applications are due December 17, 2019, and contracts are expected to begin January 2021, running for five years, with an option to extend for an additional period of three years. An award date was not announced.