HHSC terminates CHIP contracts over procurement error – State of Reform

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Texas Health and Human Services Commission has terminated CHIP contracts with 5 managed care organizations due to a scoring error during the procurement process.

The short-term contracts for CHIP Rural and Hidalgo Service Areas were scheduled to being September 1, 2018 and run through December 31, 2019. The MCOs awarded the contracts were Blue Cross and Blue Shield of Texas, Driscoll Children’s Health Plan, Texas Children’s Health Plan, Molina Healthcare of Texas and Superior Health Plan.

Instead, HHSC has issued contract extensions to Molina and Superior, which are the existing MCOs in the areas, through 2019 in order to ensure there is no impact on delivery of service. A new RFP has been released with services to begin January 1, 2020.

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