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The New Mexico Human Services Department announced Monday that it canceled the procurement process for the selection of managed care organizations in its soon-to-be revamped Medicaid program next year.
The news follows the announced departures of HSD Secretary David Scrase and Medicaid Director Nicole Comeaux last week.
HSD said in a news release that the decision was made after their departures “so that the agency’s new leadership … can assess the design of the procurement.” HSD spokeswoman Marina Piña in a follow-up email said the decision to cancel the procurement process came Friday.
The contracts for the Medicaid program’s current MCOs – which includes Blue Cross and Blue Shield of New Mexico, Presbyterian Health Plan and Western Sky Community Care – are set to expire at the end of the year, HSD said.
In late-September, HSD began soliciting proposals from health insurers for Turquoise Care, the renamed Medicaid program for 2024.
And, in December, the state submitted its five-year renewal application for the Medicaid program to the U.S. Centers for Medicare & Medicaid Services under the new name. The renewal application included delivery system changes and the addition of new benefits. Piña said the submission is not affected by the cancellation of the procurement process.
“HSD is working on a new timeline, but anticipates vendors will be selected in the next few months, well ahead of the contracts ending,” she said.
Medicaid covers nearly half of the state’s population, with some 970,000 people enrolled in the program – the highest percentage of Medicaid beneficiaries in the country.