Largest Medicaid pediatric provider sues DeSantis administration over pay rates
The pediatric healthcare provider says it cares for more than 300,000 Medicaid-eligible children in
"
Represented by the
Before filing the suit,
Value-based contracts reflect clinical performance and set pre-determined, mutually agreed upon quality, financial, and patient experience targets that need to be met to reap incentives such as bonuses.
As such, the correspondence encourages managed care plans that have value-based contracts that put healthcare providers at full risk—such as Pediatric Associates— to renegotiate those agreements and reach "mutually agreeable terms to mitigate unanticipated financial losses."
The correspondence gave the health plans 45 days to work with their contracted providers to reach a resolution, a deadline that has come and gone.
In its legal challenge
"We've repeatedly raised this issue with
The root of the problem
There have been exceptions, though. For instance, the Medically Needy program (which helps people with acute illnesses who otherwise wouldn't qualify for Medicaid), dental services for non-pregnant adults, and home-and community-based services for people with intellectual and developmental disabilities aren't mandated managed care services.
Until recently, ABA services were carved out from the state's Medicaid managed care mandate, meaning people weren't required to receive the care through their managed care plans. But the state has grappled with holding down ABA costs which, according to a recent
ABA includes therapy for adults, children with autism and special-needs children that focuses on individualized interventions to help control challenging behaviors. It helps to improve the quality of life for children with special needs and their families.
Math mistakes
The lawsuit argues that the actuarial consultants made several math mistakes, such as when they spread the costs for ABA services equally across the nine Medicaid regions and across all age groups.
"In reality, utilization of ABA services is far higher in
Similarly, actuaries allocated the costs of ABA services across all age groups even though "nearly all ABA services are utilized by children and adolescents, not by adults or infants," attorneys wrote.
Additionally, the consultants didn't preserve the underlying payments made to pediatricians for core, non-ABA services before developing the new rates.
The errors, attorneys wrote, resulted in rates that in some instances were too low for Medicaid patients who required ABA services and too high for patients who didn't require the services.
Quotation
I know from experience that if action is not taken, more families will end up relying on emergency rooms for everyday care — or worse, skipping care entirely. The funding miscalculation we are asking the state to correct is fixable, and fixing it matters for every Medicaid-insured child in
– Dr.
In the aggregate, the new rates "changed the funding formula for (managed care) in a way that has dramatically reduced funding for pediatric care — primary, specialist, and acute — by as much as 20 to 30% in some counties. Overall,
The flawed formula has allowed Medicaid reimbursement to fall below the costs of providing the care, the complaint says.
And while losing money is never ideal, it's exacerbated by the value-based purchasing contracts
Children without healthcare access
That could leave hundreds of thousands of families who rely on Medicaid for their children's healthcare in need, the pediatric provider claims.
"If the children I care for every day lose access to pediatric care, it would be absolutely devastating," Dr.
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