Committee defers decision on extension of external quality review contract for Medicaid until next month

BATON ROUGE — The Joint Legislative Committee on the Budget voted to defer consideration of a two-year extension to the Louisiana Department of Health’s contract with the Health Services Advisory Group, the external quality review organization (EQRO) that validates managed-care performance for Medicaid.

LDH presented the request as a two-year extension to allow time for a formal request for proposals (RFP). LDH said this will be the first time the existing contract is being extended and that the agency is drafting an RFP for future procurement. The department described the EQRO’s functions as validating quality-performance metrics, administering compliance reviews and producing CMS-required annual technical reports.

Representative Marcel asked how many times the contract had been extended; LDH said this would be the first extension. Senator Barrow moved to defer the item so members could review the EQRO reports and the compliance findings that LDH said the vendor produces. The motion carried and the committee asked LDH to return next month with the requested materials.