CareSource Timeline: A history of innovation in Medicaid managed care

1985-89

Ohio gives a $500,000 grant to the Greater Dayton Area Hospital Association to form a managed care plan for Medicaid recipients. The hospitals name it Dayton Area Health Plan (DAHP) and hires Western Ohio Health Care Corporation to operate it. Western Ohio hires Pamela B. Morris to lead the plan because she had a rare combination of experience as executive director of a county Medicaid program and executive director of a commercial HMO.

1989

DAHP is launched in Montgomery County as the first mandatory enrollment Medicaid managed care plan in Ohio.

Early 1990s

DAHP is granted an exemption to the 75/25 enrollment mix rule. This rule required Medicaid managed care plans to have a commercial membership of at least 25 percent. DAHP saw its role as serving low-income people and did not want to divert its resources into a for-profit venture.

The company worked with legislators to pass a bill granting an exemption. The requirement was dropped in 1997.

1993

DAHP separates from Western Ohio, which had been bought by United Healthcare. Morris makes the journey with 38 employees.

1995-96

Ohio expands Medicaid managed care to the Cincinnati, Columbus and Cleveland areas. DAHP launches Cincinnati Health Plan, Butler Health Plan, Columbus Health Plan, and Cuyahoga Health Plan.

2000

DAHP consolidates all its health plans under one name – CareSource.

2001-03

CareSource works with Ohio regulatory officials to create Preferred Option. Under this program, Medicaid recipients in counties with only one managed care plan are enrolled in that plan unless they chose to remain on fee-for-service Medicaid.

Preferred option helps fuel an explosion in growth. CareSource becomes the largest Medicaid managed care plan in Ohio, with two-thirds of health plan consumers enrolled.

2004

CareSource is ranked the sixth-largest Medicaid managed care plan in the nation by Interstudy, a leading publisher and researcher of the managed care industry.

2005

CareSource expands into Mahoning and Trumbull counties in Ohio.