ACE CARE SERVICES INC

THE ILLINOIS ACCOUNTABLE CARE ENTITY (ACE) PROGRAM WAS STARTED BY THE STATE OF ILLINOIS IN CONJUNCTION WITH THE LEGISLATIVE MANDATE THAT 50 PERCENT OF ALL MEDICAID-COVERED ENROLLEES BE ENROLLED IN A FORM OF A RISK-BASED CARE COORDINATION SYSTEM BY JAN. 1, 2015. ACES WERE INTENDED TO BE PROVIDER-BASED ORGANIZATIONS THAT WOULD TAKE RESPONSIBILITY FOR THE PROVISION OF COVERED SERVICES TO ILLINOIS MEDICAID BENEFICIARIES. ACES PROVIDE SERVICES EXCLUSIVELY TO MEDICAID BENEFICIARIES, AND THIS ACTIVITY FURTHERS THE EXEMPT PURPOSE OF ACE CARE SERVICES, INC. (ACS). ACS WAS FORMED ON DEC. 16, 2013 TO BECOME AN ACE. ACS ENTERED INTO A CONTRACT WITH THE STATE OF ILLINOIS ON JULY 27, 2014 AND PROVIDED CARE COORDINATION SERVICES UNDER ITS CONTRACT WITH THE STATE. ACS PROVIDED THE SERVICES REQUIRED IN THE STATE ACE CONTRACT THROUGH DELEGATION AGREEMENTS WITH ACE CARE PARTNERS, LLC (ACP) AND INNOVATIVE CARE PARTNERS (ICP). THIS STRUCTURE WAS DESIGNED TO ENSURE THAT CERTAIN RELIGIOUS-BASED PROVIDER ORGANIZATIONS CAN REMAIN COMPLIANT WITH THE ETHICAL AND RELIGIOUS DIRECTIVES FOR CATHOLIC HEALTHCARE SERVICES (ERD) AND WOULD NOT EVER BECOME RESPONSIBLE FOR PROVISION OF SERVICES THAT VIOLATE ERD. ACCORDINGLY, THE OBLIGATIONS OF THE STATE ACE CONTRACT THAT WERE NOT ERD-COMPLIANT WERE INTENDED TO BE DELEGATED BY ACS TO ICP. AS REPORTED IN THE 2016 FORM 990 FILING, AS A RESULT OF THE STATE OF ILLINOIS ANNOUNCING THAT IT NO LONGER WOULD PROVIDE CARE-MANAGEMENT FEES TO ACS AND ALL OTHER ACES, ACS BEGAN TRANSFERRING ITS COVERED LIVES TO FAMILY HEALTH NETWORK (FHN), A MANAGED-CARE ORGANIZATION (MCO). AS OF SEPT. 1, 2016, ALL COVERED LIVES WERE TRANSFERRED TO FHN AND THE ACS' CONTRACT WITH THE STATE OF ILLINOIS WAS TERMINATED. BECAUSE THE CONTRACT HAS BEEN TERMINATED, ACS IS NO LONGER LEGALLY REQUIRED TO PROVIDE CARE-MANAGEMENT SERVICES, AND ALL ACS ACTIVITY HAS CEASED. THE CORPORATION WAS DISSOLVED ON APRIL 4, 2019.