Managed care contract bill passed

Senators passed a bill April 5 that outlines the parameters of future medical assistance contracts for delivery of behavioral health services in Nebraska.

LB1158, introduced by Omaha Sen. Bob Krist, will require an at-risk managed care model for behavioral health managed care contacts entered into by the state Department of Health and Human Services after July 1, 2012.

Among other provisions, the bill:
• caps administrative contract spending at 7 percent, or 10 percent if necessary to improve the health status of the population being served;
• restricts contract profits to a maximum of 3 percent per year as a percentage of aggregate income and revenue;
• provides for a minimum medical loss ratio of 85 percent; and
• requires that a minimum of 0.25 percent of contract payment be contingent on performance metrics.

The bill passed 48-0 and takes effect immediately.