Hospitals, Practices Wary of Move to Medicaid Managed Care

Hospitals and practices are concerned about losing patients as states convert their fee-for-service Medicaid programs into managed care, according to a report by Kaiser Health News.

Factors in the trend toward Medicaid managed care include state budget deficits and preparations for the addition of 16 million more Americans to Medicaid under the healthcare reform law.

"Whenever you are changing the way you do business, you are going to have winners and losers," said Matt Salo, executive director of the National Association of Medicaid Directors.

Here is how nine states are dealing with the shift to Medicaid managed care.

Florida: About 40 percent of Medicaid recipients in the state are already in private managed care plans, but participation is required in only five counties. An expansion of Medicaid managed care statewide looks likely.

Illinois: A new law will direct half of the state's Medicaid patients into managed care organizations by 2015. Only about eight percent of Illinois Medicaid patients currently receive care this way.

Louisiana: Next year, the state plans to launch a program to require most of its 1.2 million Medicaid recipients to enroll in an HMO or a less restrictive type of managed care overseen by physicians.

Maine: Opposition by healthcare groups has stalled plans to require Medicaid recipients to enroll in managed care plans.

Michigan: The state has required managed care for most Medicaid recipients since the late 1990s. This year it added 21,000 foster care children and next year it plans to include 20,000 children with special health needs.

Mississippi: The state instituted a Medicaid managed care program in January, but hospitals and physicians successfully lobbied to limit the program to 15 percent of Medicaid recipients and to end it in June 2012.

South Carolina:
This year, the state began requiring most of its 830,000 Medicaid recipients to enroll in a previously voluntary managed care plan.

Texas: Having already made Medicaid managed care mandatory in Dallas, Houston, Austin and San Antonio, the state now plans to expand it to the Rio Grande Valley

Virginia: The state plans to expand its Medicaid managed care program into the southwestern part of the state next year.

Read the Kaiser Health News report on Medicaid.

Related Articles on Medicaid Managed Care:

Enrollment in Managed Medicaid Plans on the Rise
Florida Hospitals Eye Taking Insurance Risk in New Medicaid HMOs
Florida House Passes Legislation to Shift Medicaid Recipients Into HMO-Style Plans


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