Utah looks to optimize Medicaid financing
New analysis out yesterday looks at Utah’s Medicaid costs and offers ways to become more efficient. Here is the Salt Lake Tribune’s coverage of the analysis:
Utah’s Medicaid program isn’t providing enough oversight of its managed care plans, a problem that is costing the state as much as $19 million, according to a Legislative audit released Tuesday. Milliman Incorporated, a consulting firm hired to help with the audit, found $6 million to $12 million that could be saved if two providers — Molina Healthcare Utah and Select Access — matched the rates of the lowest-cost provider, Healthy U. The audit also found the jointly-run state and federal program overpaid for emergency room care in fiscal year 2009 by $7 million. And it suggests possible routes to more savings, such as reducing ER visits….
The audit recommends Medicaid return to the flat fees, which give plans an incentive to control costs. Medicaid switched to that payment model for Molina in September.”We do not think the cost-plus contracts have been optimal,” state Medicaid director Michael Hales told the Legislative Audit Subcommittee Tuesday. “We do, however, think they are better than the alternative fee-for-service (model).”
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