In 2011, Illinois passed Public Act 096-1501, a Medicaid reform law that, among other provisions, requires that 50 percent of beneficiaries in state medical assistance programs (including Medicaid and CHIP) be enrolled in risk-based coordinated care programs by January 1, 2015. The law defines coordinated care to include a full range of health care and support services, using care models other than just traditional managed care organizations. Beneficiaries enrolled in coordinated care programs will receive care from  “providers who participate under contract in integrated delivery systems that are responsible for providing or arranging the majority of care, including primary care physician services, referrals from primary care physicians, diagnostic and treatment services, behavioral health services, in-patient and outpatient hospital services, dental services, and rehabilitation and long-term care services.”
To meet the goals of Public Act 096-1501, the Illinois Department of Healthcare and Family Services has launched several Care Coordination Projects, alternative models of care delivery based on managed care organizations and three innovative structures: Accountable Care Entities (ACEs), Care Coordination Entities (CCEs) and Managed Care Community Networks (MCCNs). According to overview materials and the solicitation for applications to form these organizations:
  • An ACE is a provider-organized entity on a three-year path from care coordination fees and shared savings to pre-paid capitation with partial risk and finally to full-risk capitation. ACEs are aimed at adults and children, with an option to enroll new eligible adults under the Affordable Care Act
  • A CCE is a collaboration of providers and community agencies (organizations), governed by a lead entity that receives a care coordination payment in order to provide care coordination services for its Enrollees. The collaboration must include, at a minimum, participation from primary care physicians, hospitals, mental health providers, and substance abuse providers. CCEs are aimed at children with complex medical needs.
  • A MCCN is an entity other than a Health Maintenance Organization, that is owned, operated, or governed by providers of health care services within Illinois and that provides or arranges primary, secondary and tertiary managed health care services under contract with the Department exclusively to persons participating in programs administered by the Department. MCCNs are aimed at seniors and persons with disabilities.
According to a Care Coordination Roll-Out Plan updated in October 2013, voluntary enrollment in ACEs, CCEs, MCO, and MCCNs will begin for children, families, and newly eligible adults in July 2014. The state’s MCCN did begin operating in one area of the state in April 2013 (and expanded into the Chicago area in the summer of 2013).
The selection of the first CCEs and MCCN under the Innovations Project was announced in October 2012; the six winning proposals were selected because they “presented the most comprehensive models and took a holistic approach to serving clients and coordinating services for all of their needs.” Proposals for ACEs were accepted until January 2014. State officials expect the program to grow over time.
Last updated April 2014.


Project Scope
Eligible Patient Population: The initial solicitation for provider proposals to form Care Coordination Entities (CCEs) or Managed Care Community Networks (MCCNs) under the Care Coordination Innovations Project identified the eligible patient population as:
  • Seniors,
  • Adults with Disabilities (including long-term care populations, those with Serious Mental illness, Home and Community-based Services Waiver populations, and Dual Eligibles),
  • Other Illinois Health Connect Adults, and
  • Children in the families of adults enrolled in a CCE or MCCN.
Enrollees in a CCE must also be enrolled in Illinois Health Connect, the state’s Medicaid primary care case management program. Medicaid beneficiaries who are enrolled in a managed care organization are not eligible to enroll in a CCE. Initially, the choice to enroll in a CCE or MCCH is voluntary.
Provider population: ACEs must include primary care, specialty care, hospitals, and behavioral health providers. CCEs are required, at a minimum, to include primary care providers, hospitals, mental health providers, and substance abuse providers. The matchmaking tool developed by the Illinois Department of Healthcare and Family Services allows community partners interested in forming a CCE to search for a range of potential partners, including general hospital, primary health clinic, public health, home health, hospice, medical equipment, social service/community-based, and dental partners.
Primary care physicians may be enrolled in more than one CCE or MCCN.
Attribution: Enrollees select an ACE, CCE or MCCN and are locked into their choice for 12 months; they may change CCEs or MCCNs during an annual open enrollment period.
Scope of Services: Entities applying to participate in the Care Coordination Innovations Project as an ACE, CCE or MCCN must be able to coordinate care across the spectrum of the health care system with a particular emphasis on managing transitions between levels of care and coordination between physical and mental health and substance abuse.
Under Public Act 096-1501, care coordination must include providing or arranging for a majority of care around the patient’s needs, including a medical home with a primary care provider, specialist services, diagnostic and treatment services, mental health and substance abuse services, inpatient and outpatient hospital services, and rehabilitation and long-term care services.
The initial solicitation for proposals specifies that MCCNs must, at a minimum, assume risk for services included in Service Package I of the state’s Integrated Care Program: all standard Medicaid medical services, such as physician and specialist care, emergency care, laboratory and X-rays, behavioral health, pharmacy, behavioral health and substance abuse services.
The Care Coordination Innovations Project is an initiative within the Illinois Department of Healthcare and Family Services to meet a legislative mandate that 50 percent of Medicaid beneficiaries be enrolled in coordinated care by 2015. This mandate—and the definition of “coordinated care”—was passed as part of Public Act 096-1501 in 2011.
An Accountable Care Entities (ACE) is defined as “An organization comprised of and governed by its participating providers, with a legally responsible lead entity, that is accountable for the quality, cost, and overall care of its Enrollees.”
Care Coordination Entities (CCEs) are collaborations of community providers and community agencies. Groups of providers that wish to become a CCE may create a new corporate entity or they may designate a lead entity to serve as the legal entity responsible for executing the CCE contract with the state.
Managed Care Community Networks (MCCNs) are entities that are owned, operated, or governed by health care providers; MCCNs must submit their articles of incorporation and by-laws with their application.
Each organization works under contract with the Illinois Department of Healthcare and Family Services.
Criteria for Participation
Under the initial solicitation for proposals under the Care Coordination Innovations Project, organizations bidding to become Care Coordination Entities (CCEs) or Managed Care Community Networks (MCCNs) must:
  • Be able to facilitate care between hospitals and PCPs, and among hospitals, mental health Providers, substance abuse Providers, and PCPs
  • Demonstrate an adequate medical home network
  • Meet requirements in Section 2703 of the Affordable Care Act (ACA), if the CCE or MCCN plans to implement the Health Homes Option in Section 2703 of the ACA
  • Describe their electronic capabilities and their planned use of health information technology in coordinating care
  • Describe how their care coordination model is sensitive to the culture and specific needs of the populations they propose to serve
Coordinated Care Entities (CCEs) may choose from three risk-based payment models (full payment is contingent upon adequate performance on specified quality measures):
  1. A care coordination fee, paid on a per member per month basis for each population in its care coordination model. A percentage of the fees will be withheld, contingent upon the CCE meeting quality measure targets.
  2. A shared savings model that makes the CCE eligible for up to 50 percent of annual savings below a projected cost of care baseline, provided quality targets are met.
  3. An “interagency payment flexibility proposal” option, by which CCEs are encouraged to develop innovative payment methodologies, which may include new reimbursement methods like bundled payments or payments for episodes of care.
CCEs may choose more than one of the reimbursement options. CCEs may also propose alternative reimbursement methodologies to fee-for-service for medical services.
Managed Care Community Networks (MCCNs) operate under a capitated payment structure. Portions of the capitation rate are withheld and paid based on the MCCN’s performance in meetings quality measure targets.
Accountable Care Entities will receive care coordination payments and receive shared savings for the first 18 months of their operation. For months 19 through 36, ACEs will transition to pre-paid capitation with pay-for-performance incentives. Beginning in the fourth year of operations, CCEs will receive full risk-based capitation payments.
Support for Infrastructure
The state has developed a matchmaking database to help potential collaborators to identify other entities that may be interested in participating in a Coordinated Care Entity  (CCE) or Managed Health Care Network (MCCN).
The state may also advance a portion of the care coordination fees to fund start- up costs, such as investments in health information technology (HIT); advance payments made will be recouped from future care coordination payments on a negotiated schedule.
Accountable Care Entities (ACEs) are expected to build infrastructure (including HIT and data analytics) to support care management among providers participating in the ACE’s network.
Measurement and Evaluation
Appendices to the initial solicitation for proposals under the Care Coordination Innovations Project contain a number of quality measures that will be used to hold the provider-organized Care Coordination Entities (CCEs) and Managed Care Community Networks (MCCNs) accountable for the quality of care provided to enrollees. Payments under the risk-based payment models for CCEs and full capitation rates for the MCCNs will be tied to seven of these measures in particular. These seven metrics are measures of:
  • Behavioral health support
  • Ambulatory care
  • Inpatient utilization – general hospital / acute care
  • Ambulatory care follow-up after inpatient discharge
  • Inpatient hospital re-admissions
  • Access to enrollee’s assigned primary care provider, and
  • Medication therapy management
Draft performance measures for Accountable Care Entities (ACEs) contain a number of measures of:
  • Access and utilization
  • Prevention and screening
  • Appropriate care
  • Behavioral health, and
  • Maternity.


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