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In Lieu of Services Technical Assistance

In Lieu of Services (ILOS) are services determined by the state to be medically appropriate and cost-effective substitutes for covered services or settings under the State Medicaid Plan. ILOS must meet requirements outlined in 42 CFR 438.3(e)(2). Coordinated care organizations (CCOs) are not required to offer ILOS to members. A member cannot be required to use the alternative service or setting.

Supporting health system transformation

ILOS can support key services, such as the Diabetes Prevention Program and traditional health care workers, and enables covered services to be provided in non-traditional settings.

ILOS also connects to the larger vision for CCO 2.0 and key transformation objectives by:

  • Improving access to services in a more culturally responsive manner;
  • Enhancing care coordination for high-need/traditionally underserved members; and
  • Reducing hospital care, nursing facility care, and emergency department utilization.

ILOS learning opportunities

Additional CCO technical assistance for ILOS will be posted here at it becomes available.

Webinar: CCO Introduction to In Lieu of Services: Recording / Slides


For questions related to ILOS technical assistance, contact the OHA Transformation Center at

For ILOS program questions, please see the Health System Division ILOS webpage.

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