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  5. ›Heritage Health

Awarded contract·Department of Health and Human Services·Nebraska

Heritage Health

$750MSingle Award
Contract source

Description

This solicitation (RFP 112209 O3) seeks a single award to operate Nebraska’s full‑risk, capitated Medicaid Managed Care program covering physical health, behavioral health, pharmacy, and dental services for all state Medicaid members. The contract is a five‑year base term with the possibility of two one‑year renewal options. Key elements include: • Mandatory pre‑proposal conference (April 28 2022) and a strict bid‑submission deadline (July 1 2022, 2 pm CT). • Full‑risk financial responsibility: the MCO receives per‑member capitation payments, must meet medical‑loss‑ratio and quality‑performance thresholds, and is subject to hold‑back and liquidated‑damage provisions. • Extensive performance metrics (QPPs) covering claims timeliness, encounter acceptance, appeal resolution, preventive‑care screenings, chronic‑disease management, substance‑use‑disorder treatment, and readmission monitoring, each tied to a percentage of the payment pool. • Optional fee‑for‑service component (Section AA) that allows the State to procure separate claims‑processing services. • Detailed reporting, data‑exchange, and audit requirements, with all non‑proprietary proposals becoming public record.

Attached files

Key dates

Questions due
5/2/2022
Pre-bid meeting
4/28/2022Mandatory
Bids closed
7/1/2022
Duration
5 years

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Solicitation
Request for Proposal
Industry
Healthcare and Medical Services
NAICS
524114
Solicitation №
112209 O3

Contract value

$750,000,000

The RFP does not disclose a contract dollar amount. Nebraska’s Medicaid enrollment (as shown in the “Member Counts by County” attachment) totals roughly 300,000 members. State‑wide Medicaid capitation rates for a full‑risk MCO in 2022 typically range from $400 to $600 per member per month, depending on service mix and risk adjustments. Using a midpoint of $500 per member per month yields an annual payment of 300,000 × $500 = $150 million. Over a five‑year base term, the undiscounted value would be about $750 million, plus any optional one‑year renewals. Adjustments for hold‑backs, performance‑based incentives, and optional fee‑for‑service components could raise or lower the total, but a ball‑park estimate for the base contract is in the $700 million–$800 million range.

AI estimate from the award documents

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