Ohio to rebid costly private Medicaid contracts
About 1 in 4 Ohioans -- 2.8 million people -- are covered by Medicaid, which has a
But the majority of the money spent isn't directly paid out for health care services. Instead, the money goes to private health insurance companies that are contracted to the state to manage those health care dollars.
DeWine on Friday ordered
There are no details yet on what could changes could be coming, but rebidding the contract lets state officials look for cost savings and explore ways to improve health care by tying payments to quality outcomes.
"The goal is to obviously save taxpayers' dollars and try to get a better deal for the state of
Tierney said one of the reasons for revisiting the contracts is to look at the subcontractors who manage pharmacy benefits for the insurance companies. The five insurers all subcontract with either CVS Caremark or
Amid the criticism, Ohio Medicaid already made a major change to how pharmacy benefits are paid by switching to a more transparent business model. The pharmacy middlemen used to make a profit by marking up drug prices but didn't disclose details. Starting
Separately, House Speaker
"I think that's something we're going to look at hard. Not talking about doing away with them. I'm talking about we need to look very hard at the way those dollars are allocated to the systems and make sure they're being done effectively and efficiently," Householder said. "I'm worried that there is money being lost in the system."
The last time the contracts were rebid was in 2011 and that process took about a year and a half.
Any changes to the contract would affect
CareSource's revenue has grown from
"We look forward to working with the new administration to continue to drive quality outcomes and value in the state's Medicaid managed care programs," said
Medicaid represents 23 percent of the state's 2018-19 general fund budget, according to Policy Matters Ohio.
Ohio Medicaid spokesman
"I think it's very valid to say 'What are we getting from those dollars? and 'how are costs contained without sacrificing quality of care?'" Anthes said.
Reporter
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