MURIEL BOWSER
MAYOR
September 1, 2021
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to the Mayors Order 2021-105 dated September 1, 2021 declaring a health care
resources emergency, enclosed for consideration and approval by the Council of the District of
Columbia is option period one of Contract No. CW83148 with MedStar Family Choice. This
approval request consists of proposed Modification No. M0008 in the not-to-exceed (NTE)
amount of $999,103,492.50, as well an additional three months, if necessary, in the NTE amount
of $333,034,497.72. Proposed Modification No. M0008 is for the nine-month period of October
1, 2021 through June 30, 2022. The additional option, if necessary, would be for the three-
month period of July 1, 2022 through September 30, 2022. The total amount for the nine-month
period, and then the three-month period, if necessary, is $1,332,137,990.22, and this is the total
for all three managed care organization contracts.
Under the proposed modification, MedStar Family Choice shall continue to provide healthcare
and pharmacy services for its Managed Care Program. The Medicaid Managed Care Program
consists of the DC Healthy Families Program, including Adults with Special Health Care Needs,
(adults receiving Supplemental Security-Income (SSI) and with SSI-related disabilities), the
District of Columbia Healthcare Alliance Program), and the Immigrant Childrens Program.
I am available to discuss any questions you have regarding the proposed modification. In order to
facilitate a response to any questions you may have, please have your staff contact Marc Scott,
Chief Operating Officer of the Office of Contracting and Procurement, at (202) 724-8759.
I look forward to the Councils favorable consideration of this contract.
Sincerely,
Muriel Bowser
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
Pursuant to section 202(c-3) of the Procurement Practices Reform Act of 2010, as amended, D.C.
Official Code 2-352.02(c-3), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Options)
(A) Contract Number: CW83148
Proposed Contractor: MedStar Family Choice (MedStar)
Contract Amount (Option Period 1): Proposed Modification No. M0008
$999,103,492.50 Not-to-exceed (NTE)
Additional three-month option period, if necessary
$333,034,497.72 NTE
Total Option Period One
$1,332,137,990.22 NTE for all three Managed Care
Organization contracts.
Unit and Method of Compensation: Monthly capitation payment for each participant
Term of Contract: Proposed Modification No. M0008
October 1, 2021 to June 30, 2022 (Nine Months)
Additional three-month option period, if necessary
July 1, 2022, through September 30, 2022
Type of Contract: Indefinite Delivery/Indefinite Quantity (IDIQ) with fixed capitated rates.
(B) Identifying number of the underlying contract, including the identifiers assigned to the
underlying contract by the Council for the base period and any subsequent option periods:
Base Period Amount: NTE $1,492,392,346.13
(October 1, 2020 through September 30, 2021)
(Council Approval CA23-0638)
1
Option Period 1 Amount: NTE $1,332,137,990.22
(October 1, 2021 through September 30, 2022)
Explanation of difference from base period (if applicable): The capitation rates are risk adjusted
every six months. Amount will be based on actuarial review of the capitation rates. An adjustment
to the capitation rates shall be effective as of the first day of the option period and six months after
each option period, to which the adjusted capitation rate applies (either upwards or downwards), if
appropriate. In the event a prospective capitation rate adjustment is required, an actuarial analysis
will be completed by the Districts contracted actuary. If required, the District will make the
necessary adjustment to the capitation rates.
(C) A statement that Citywide Clean Hands database indicates that the proposed contractor is
current with its District taxes. If the Citywide Clean Hands Database indicates that the
proposed contractor is not current with its District taxes, either: (1) a certification that the
contractor has worked out and is current with a payment schedule approved by the District;
or (2) a certification that the contractor will be current with its District taxes after the District
recovers any outstanding debt as provided under D.C. Official Code 2-353.01(b):
On August 30, 2021, the Citywide Clean Hands database certified that the MedStar is current with
its District taxes.
(D) A statement that the proposed contract is within the appropriated budget authority for the
agency for the fiscal year and is consistent with the financial plan and budget adopted in
accordance with D.C. Official Code 47-392.01 and 47-392.02:
The Department of Health Care Finance Agency Fiscal Officer certified that funding in the NTE
amount of $1,332,137,990.22 is available to support the contract for the MCOs. The NTE amount is
for all three MCO contracts.
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GOVERNMENT OF THE DISTRICT OF COLUMBIA
Department of Health Care Finance
Office of the Chief Financial Officer
MEMORANDUM
TO: George A. Schutter
Chief Procurement Officer
Office of Contracting and Procurement
THRU: Delicia Moore
Associate Chief Financial Officer
Human Support Services Cluster
FROM: Darrin Shaffer
Agency Fiscal Officer
Department of Health Care Finance
DATE: 09/01/2021
SUBJECT: Certification of Funding for the Managed Care Organization Contracts
AmeriHealth Caritas District of Columbia, Inc. CW83144
Trusted Health Plan (District of Columbia), Inc. DBA CareFirst BlueCross BlueShield Community
Health Plan CW83148
MedStar Family Choice CW83146
DHCF estimates that the cost of providing managed care coverage to Medicaid, Childrens Health Insurance Program
(CHIP), Immigrant Childrens Program, and Alliance beneficiaries from October 1, 2021 through September 30,
2022 through the contracts listed below will not exceed $1,332,137,990.22.
Contracts:
AmeriHealth Caritas District of Columbia, Inc. Contract Number: CW83144
Trusted Health Plan (District of Columbia), Inc.
DBA CareFirst BlueCross BlueShield Community Health Plan Contract Number: CW83148
MedStar Family Choice Contract Number: CW83146
This memorandum certifies that the Department of Health Care Finance has $1,332,137,990.22 in the FY 2022
proposed budget to support this cost from October 1, 2021 through September 30, 2022. This funding is sufficient to
support all of the beneficiaries expected to enroll in an MCO during the contract period.
Upon approval by Congress of the Districts Local Budget and Financial Plan, funds will be sufficient to pay the
cost associated with these contracts. There is no fiscal impact associated with these contracts.
Should you have any questions, please contact me at (202) 442-9079.
cc: Wayne Turnage, DHCF
Angelique Martin, DHCF
Lisa Truitt, DHCF
441 4th Street, NW, Suite 900 South, Washington, D.C. 20001 (202) 442-5988 FAX (202) 478-1373
AMENDMENT OF SOLICITATION / MODIFICATION OF CONTRACT 1. Contract Number Page of Pages
CW83148 1 1
2. Amendment/Modification Number 3. Effective Date 4. Requisition/Purchase Request No. 5. Solicitation Caption
Managed Care Organization
M0008 October 1, 2021 (MCO)
6. Issued by: Code 7. Administered by (If other than line 6)
Office of Contracting and Procurement DEPARTMENT OF HEALTHCARE FINANCE
441 4th Street NW, Suite 330S 441 4th Street, N.W. Suite 900S
Washington, DC 20001 Washington, DC 20001
Lisa Truitt, Contract Administrator (CA)
8. Name and Address of Contractor (No. street, city, county, 9A. Amendment of Solicitation No.
state and zip code)
9B. Dated (See Item 11)
Leslie Lyles Smith, Executive Director 10A. Modification of Contract/Order No.
MedStar Family Choice
4201 Connecticut Avenue, NW, Suite 200 X CW83148
Washington, D.C. 20008
Leslie.S.LylesSmith@medstar.net
10B. Dated (See Item 13)
Code Facility 10/1/2020
11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
The above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers is extended. is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:
(a) By completing Items 8 and 15 and returning __________ copies of the amendment: (b) By acknowledging receipt of this amendment on each copy of the
offer submitted; or (c) BY separate letter or fax which includes a reference to the solicitation and amendment number. FAILURE OF YOUR
ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED
MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such may be made by letter
or fax, provided each letter or telegram makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.
12. Accounting and Appropriation Data (If Required)
13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACT/ORDERS,
IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14
A. This change order is issued pursuant to (Specify Authority): 27 DCMR, Chapter 36, Contract Modifications
X The changes set forth in Item 14 are made in the contract/order no. in item 10A.
B. The above numbered contract/order is modified to reflect the administrative changes (such as changes in paying office, appropriation data
etc.) set forth in item 14, pursuant to the authority of 27 DCMR, Chapter 36, Section 3601.2.
C. This supplemental agreement is entered into pursuant to authority of:
D. Other (Specify type of modification and authority)
E. IMPORTANT: Contractor is not is required to sign this document.
14. Description of Amendment/Modification (Organized by UCF Section headings, including solicitation/contract subject matter where feasible.)
Contract No. CW83148 is hereby modified to incorporate the following:
1. Pursuant to the Mayors Order 2021-105 dated September 1, 2021 declaring a health care resources
emergency, and Section F.2 of the contract, the District hereby partially exercises option period one for
the period of performance from October 1, 2021 through June 30, 2022, in the amount NTE
$999,103,492.50. The total contract NTE amount is for all three MCO contracts.
All Other Terms and Conditions remain unchanged
Except as provided herein, all terms and conditions of the document is referenced in Item 9A or 10A remain unchanged and in full force and effect.
15A. Name and Title of Signer (Type or print) 16A. Name of Contracting Officer
Helena Barbour
15B. Name of Contractor 15C. Date Signed 16B. District of Columbia 16C. Date Signed
(Signature of person authorized to sign) (Signature of Contracting Officer)