New Mexico to Reduce Managed Care Plans in Medicaid Overhaul

The New Mexico Human Services Department has released a new proposal (pdf) to restructure its Medicaid program.

One of the major components of New Mexico's Medicaid overhaul would be reducing the number of managed care plans from seven to a "smaller, more manageable number." All of the plans ultimately selected to participate in the program will be expected to deliver a full range of services.

The new Medicaid program would also focus on coordination of care, health literacy, preventive services, patient-centered medical homes and payment reforms to reward cost-effective care.


Hospitals would also receive financial incentives to follow-up with Medicaid patients following procedures to prevent readmissions, while patients would receive financial incentives to make basic preventive health decisions.

"Without making cuts to eligibility or services, we can streamline and simplify the delivery of healthcare services under Medicaid, while promoting healthier decisions by New Mexicans and providing more cost-effective and better-coordinated care for patients," said HSD Secretary Sidonie Squier in a news release (pdf).

The proposal now goes to CMS for approval. If approved, New Mexico would implement the new program by the end of 2013.

Related Articles on Medicaid Overhauls:

CMS Denies Parts of Florida's Medicaid Plan

Medicaid Managed Care Trend Spurs Interest in Alabama

Kansas Quickly Moves Toward Medicaid Managed Care Overhaul

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