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In Lieu of Services


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 Healthcare 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.
Questions? Please contact

Webinars and meetings

Introductory webinar that covers an overview of ILOS, CCO Contract changes, ILOS use cases, and frequently asked questions.

​Join us for an opportunity to ask questions and discuss ILOS concepts with OHA staff.

Previous sessions