Private Companies Picked To Manage Kentucky's Medicaid Plan. Yes, that Includes Passport. Go Figure!
Private companies to manage most of Kentucky's Medicaid plan
By Jack Brammer
FRANKFORT — Private companies will manage care for the vast majority of Kentucky's 815,000 recipients of Medicaid, the health insurance program for the poor and disabled that has been a financial nightmare for the state, Gov. Steve Beshear announced Thursday.
He described the expansion of managed care as "a major sea change" in the $6 billion-a-year program.
At a Capitol news conference, Beshear said the expansion of managed care will save taxpayers $375 million in Kentucky's General Fund, which pays for most state programs, over the course of new, three-year contracts.
The federal government pays for much of Medicaid, so total savings will reach $1.3 billion over three years, Beshear said.
The contracts with managed care companies, which will begin enrolling recipients on Oct. 1, and other efficiencies will balance the state's Medicaid budget in the fiscal year that began July 1, Beshear said.
As an added bonus, the contracts will create 543 jobs, Beshear said.
The contracts will mean no cuts in services for Medicaid recipients, he said.
The state has awarded four contracts to managed care organizations.
Three of those contracts are with new vendors, and will serve more than 560,000 recipients.
An annual contract with Passport, which had been Kentucky's only managed care provider, has also been renewed to provide services to 170,000 Medicaid recipients in Jefferson and 15 nearby counties.
The three new contracts were awarded to:
■ CoventryCares of Kentucky, a division of Coventry Health and Life Insurance Company, which is a subsidiary of Coventry Health Care, Inc. Coventry companies currently offer Medicaid managed care services in eight states — Florida, Maryland, Michigan, Missouri, Nebraska, Pennsylvania, Virginia and West Virginia.
■ Kentucky Spirit Health Plan, a subsidiary of Centene Corporation headquartered in Missouri, which has 27 years of experience managing Medicaid plans. It currently provides services in 12 other states — Arkansas, Arizona, Florida, Georgia, Illinois, Indiana, Maryland, Mississippi, Ohio, South Carolina, Texas and Wisconsin.
■ WellCare of Kentucky, a part of WellCare Health Insurance of Illinois, which currently serves 2.2 million members in seven states — Florida, Georgia, Hawaii, Illinois, Mississippi, New York and Ohio.
All managed care firms will be required to have offices in Kentucky to administer member services. The firms estimate that nearly 550 people will be hired in Kentucky by next Jan. 1 to administer the managed care contracts.
The renewal of the one-year Passport contract, which Beshear said will save $10.5 million in General Fund money and $36.7 million in all funds, ensures there will be no break in coverage for Medicaid recipients in the Louisville region, Beshear said.
State Auditor Crit Luallen last year found unnecessary spending by Passport executives. Beshear made immediate changes at Passport — including replacing the entire administrative team and more monitoring by the state Cabinet for Health and Family Services.
Of the managed care expansion, Beshear said, "We were confident that moving Medicaid from a mostly fee-for-service system to managed care would create significant savings, preventing unnecessary and devastating cuts to our priorities such as education and job creation. These contracts show the savings are real.
"Managed care will provide consistent, comprehensive care to patients, so our vulnerable families will continue to get the quality medical services they need."
The state must now receive federal approval of its Medicaid managed care plan from the Centers for Medicare and Medicaid Services. If federal approval is granted, Medicaid would begin enrolling patients in one of the three new managed care plans starting Oct. 1.
Beshear said his administration will begin an educational campaign to inform Medicaid recipients about the changes.
Beshear is planning to fly Friday to Paducah, Bowling Green and Owensboro to explain the changes.
He said he will be conducting no events for his campaign for re-election during the fly-around.
Beshear, a Democrat, faces Republican Senate President David Williams in the November general election. Gatewood Galbraith, a Lexington attorney, is trying to get on the ballot as an independent candidate.
Read more: http://www.kentucky.com/2011/07/07/1803270/private-companies-to-manage-most.html#ixzz1RRSJkcSW
By Jack Brammer
FRANKFORT — Private companies will manage care for the vast majority of Kentucky's 815,000 recipients of Medicaid, the health insurance program for the poor and disabled that has been a financial nightmare for the state, Gov. Steve Beshear announced Thursday.
He described the expansion of managed care as "a major sea change" in the $6 billion-a-year program.
At a Capitol news conference, Beshear said the expansion of managed care will save taxpayers $375 million in Kentucky's General Fund, which pays for most state programs, over the course of new, three-year contracts.
The federal government pays for much of Medicaid, so total savings will reach $1.3 billion over three years, Beshear said.
The contracts with managed care companies, which will begin enrolling recipients on Oct. 1, and other efficiencies will balance the state's Medicaid budget in the fiscal year that began July 1, Beshear said.
As an added bonus, the contracts will create 543 jobs, Beshear said.
The contracts will mean no cuts in services for Medicaid recipients, he said.
The state has awarded four contracts to managed care organizations.
Three of those contracts are with new vendors, and will serve more than 560,000 recipients.
An annual contract with Passport, which had been Kentucky's only managed care provider, has also been renewed to provide services to 170,000 Medicaid recipients in Jefferson and 15 nearby counties.
The three new contracts were awarded to:
■ CoventryCares of Kentucky, a division of Coventry Health and Life Insurance Company, which is a subsidiary of Coventry Health Care, Inc. Coventry companies currently offer Medicaid managed care services in eight states — Florida, Maryland, Michigan, Missouri, Nebraska, Pennsylvania, Virginia and West Virginia.
■ Kentucky Spirit Health Plan, a subsidiary of Centene Corporation headquartered in Missouri, which has 27 years of experience managing Medicaid plans. It currently provides services in 12 other states — Arkansas, Arizona, Florida, Georgia, Illinois, Indiana, Maryland, Mississippi, Ohio, South Carolina, Texas and Wisconsin.
■ WellCare of Kentucky, a part of WellCare Health Insurance of Illinois, which currently serves 2.2 million members in seven states — Florida, Georgia, Hawaii, Illinois, Mississippi, New York and Ohio.
All managed care firms will be required to have offices in Kentucky to administer member services. The firms estimate that nearly 550 people will be hired in Kentucky by next Jan. 1 to administer the managed care contracts.
The renewal of the one-year Passport contract, which Beshear said will save $10.5 million in General Fund money and $36.7 million in all funds, ensures there will be no break in coverage for Medicaid recipients in the Louisville region, Beshear said.
State Auditor Crit Luallen last year found unnecessary spending by Passport executives. Beshear made immediate changes at Passport — including replacing the entire administrative team and more monitoring by the state Cabinet for Health and Family Services.
Of the managed care expansion, Beshear said, "We were confident that moving Medicaid from a mostly fee-for-service system to managed care would create significant savings, preventing unnecessary and devastating cuts to our priorities such as education and job creation. These contracts show the savings are real.
"Managed care will provide consistent, comprehensive care to patients, so our vulnerable families will continue to get the quality medical services they need."
The state must now receive federal approval of its Medicaid managed care plan from the Centers for Medicare and Medicaid Services. If federal approval is granted, Medicaid would begin enrolling patients in one of the three new managed care plans starting Oct. 1.
Beshear said his administration will begin an educational campaign to inform Medicaid recipients about the changes.
Beshear is planning to fly Friday to Paducah, Bowling Green and Owensboro to explain the changes.
He said he will be conducting no events for his campaign for re-election during the fly-around.
Beshear, a Democrat, faces Republican Senate President David Williams in the November general election. Gatewood Galbraith, a Lexington attorney, is trying to get on the ballot as an independent candidate.
Read more: http://www.kentucky.com/2011/07/07/1803270/private-companies-to-manage-most.html#ixzz1RRSJkcSW
Labels: Keeping them honest, Kentucky politics, Public health
posted by KYJurisDoctor at 12:34 PM
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