Illinois lawmakers forgo vote on health-exchange bill, and other news

Legislation to establish a state-based health insurance exchange in Illinois failed to come up for a vote in the House before the Democratic-controlled Legislature adjourned for the year last Wednesday. That means Illinois won't be able to apply for $270 million in federal exchange development funds. Republican Gov.-elect Bruce Rauner opposes Obamacare, making future action doubtful.

Democratic state Rep. Robyn Gabel pushed the legislation during last week's special session in the wake of the Supreme Court's decision to take up a case that could end subsidies for millions of low-income households in the 34 states that haven't set up their own exchanges.

In Illinois, about 167,000 residents have accessed subsidies to help pay for coverage through the exchange. That's roughly 80% of the state's 217,000 total exchange customers. Financial assistance is available for households with incomes up to 400% of the federal poverty level.

Illinois is among seven states that have partnership exchanges. It was one of the few states using HealthCare.gov that was moving to establish its own exchange. —Paul Demko

Follow Paul Demko on Twitter: @MHpdemko

Indiana has selected three health insurers to manage care for poor, elderly, blind and disabled people under a new four-year, $4 billion Medicaid program.

Anthem Blue Cross and Blue Shield , Managed Health Services of Indiana and MDwise won the contracts, which start April 1. Anthem Blues is a subsidiary of Indianapolis-based Anthem (until last week known as WellPoint), and MHS is a subsidiary of Centene Corp. MDwise, founded by Indiana University Health and the Health and Hospital Corp. of Marion County, is a not-for-profit plan.

The managed-care companies will receive lump-sum payments to provide coordinated care for 84,000 aged, blind and disabled Medicaid enrollees who also qualify for Medicare, a population often referred to as dual-eligibles.

Each insurer is expected to receive about $335 million in annual revenue under the contract, assuming each covers an equal amount of enrollees, said Justin Lake, an analyst with J.P. Morgan Securities. —Bob Herman

Follow Bob Herman on Twitter: @MHbherman