November 21, 2012
Claire Smith, 608-266-1683

Secretary Dennis G. Smith Releases Statement Regarding Non-Emergency Transportation for Medicaid Members

MADISON-Department of Health Services Secretary Dennis G. Smith today released a statement regarding LogistiCare's decision to terminate its contract for serving as the Medicaid and BadgerCare Plus transportation manager and providing non-emergency medical transportation to members.

"Yesterday, LogistiCare notified us that it plans to terminate its contracts with the Department of Health Services, effective in 90 days on February 17, 2013," said Secretary Smith. "As a result of receiving this letter, the Department intends to rewrite and issue a new Request for Proposal (RFP) for a non-emergency medical transportation manager, with updated data, so we can secure a transportation manager who will be able provide this important benefit to our members as soon as possible.

During the next 90 days, we will be working closely with LogistiCare to continue providing this benefit to members. This announcement does not affect the benefits that members are eligible for and they will still receive the transportation they need to get to their medical services. We are monitoring the performance standards and will take any action necessary to ensure all members receive the timely transportation they need.

This announcement is not an indicator that we will go back to the old county-based system for providing members transportation to medical appointments or that we will be changing our approach to providing transportation to our members. We are committed to the transportation manager model in here in Wisconsin. I am confident that this model will work here in Wisconsin, as it has in other states.

We recognize that there were limitations to the original RFPs. The Department had limited data to share regarding utilization of these services and prospective bidders, including LogistiCare, did not have all of the data needed to submit a reasonable estimate of the costs to adequately staff to serve as the state's non-emergency medical transportation manager.

This situation will be corrected and we believe a new contract can be secured that is both financially viable for a transportation manager and will still achieve savings for the state."

Attachment: Notice of Termination of Contract letter from LogistiCare
Attachment: LogistiCare Q&A for Medicaid and BadgerCare Plus members