Monday, June 25, 2012

Despite problems, managed care saved state $190 million in six months, official says

Though there have been plenty of bumps in the state's move to  managed care for 820,000 Kentuckians on Medicaid, Health and Family Services Cabinet Secretary Audrey Haynes told lawmakers Wednesday it has saved the state $190 million in just six months.

Payments have cost $190 million less than if the state had not contracted with three managed-care organizations, reports Nick Storm for cn|2's "Pure Politics." The companies are paid on a per-month, per-patient basis, considered less expensive than the fee-for-service model.

Haynes, who replaced Janie Miller in the spring, said her immediate goals for the cabinet are implementing the state's prescription drug monitoring system within the cabinet; hiring additional social workers; and continuing to smooth the bumps caused by managed care. Overall, she said she wants to improve transparency within the cabinet; improve coordination between departments; and shore up service gaps, especially within managed care.

Sen. Julie Denton, R-Louisville, asked Haynes about concerns she has over management in the Louisville office of the Department for Community Based Services, but Haynes said she could not comment on an ongoing investigation. (Read more)

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