Minnesota nonprofit HMOs to pay state $73 million [Pioneer Press, St. Paul, Minn.]
| By Christopher Snowbeck, Pioneer Press, St. Paul, Minn. | |
| McClatchy-Tribune Information Services |
State officials expect to receive the funds by this summer and anticipate that about half the money will go to the federal government, according to an announcement
For years, the state has hired nonprofit health maintenance organizations to manage the care for most people enrolled in the state's two largest public health insurance programs. Called
For more than a year, questions have roiled the Capitol about whether state contracts have provided too much profit for health plans. Last year, HMOs and the Dayton administration re-negotiated contract terms so that health plans' operating profits from the two programs during 2011 would be capped at 1 percent of revenue.
"Today does mark a real milestone in our administration's efforts to transform the way we pay for health care," said
UCare will pay
The UCare repayment comes on top of a
Past contracts between the state and HMOs were "too generous with the taxpayers' money," said Dayton, a Democrat. The one-time cap on profits in 2011 was negotiated for the third year of a three-year contract that Dayton said was negotiated during the administration of Republican Gov.
Going forward, HMO contracts in the metro are being awarded through a competitive bidding process that will be extended elsewhere in the state, Jesson said.
But Sen.
"I don't believe that the margins that are being generated by private entities are necessarily atypical," Hann said. "The real question is whether we want to have the marketplace play a role in what we do in health care policy....I think we do."
At
At his news conference, Dayton also mentioned the personal care attendants as a potential beneficiary. Last year, the state reduced by 20 percent the pay of personal care assistants who provide care for their relatives.
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