Report: Missouri could save billions with Medicaid overhaul

1 year 4 months 3 weeks ago Monday, February 11 2019 Feb 11, 2019 Monday, February 11, 2019 7:26:00 PM CST February 11, 2019 in News
By: The Associated Press

JEFFERSON CITY (AP) — Missouri could save up to $1 billion a year within the next four years if it overhauls the state's Medicaid health insurance program, according to a study from a consulting team.

A draft of the report obtained by the St. Louis Post-Dispatch does not recommend tightening eligibility rules for Medicaid. State lawmakers are separately considering a plan to require healthy Medicaid recipients to work.

The consulting firm, McKinsey & Co., said the state could reduce Medicaid costs by altering reimbursement rates for hospitals, doctors and nursing homes. The report also recommends that more people be moved to home-care services and says prescription drug costs could be better managed.

"Without significant changes, Medicaid spending may comprise 26 percent to 30 percent of state general revenues by 2023. To bring growth of Medicaid spending in line with the level of economic growth of the state while preserving access for participants and avoid reducing eligibility or coverage, significant savings would be necessary," according to the report.

The study began last year after former Gov. Eric Greitens pushed to find ways to control Medicaid's escalating costs. The consultants were paid $2.7 million.

Gov. Mike Parson said Monday the state owes it to citizens to maximize the use of tax dollars spent on Medicaid.

"Ensuring that each and every Missourian has access to the quality health care they deserve is crucial to improving Missouri's workforce and infrastructure," Parson said.

The study found Missouri spent nearly $10 billion on Medicaid in 2018, funded with 53 percent in federal funds and 21 percent in state general revenues, with the balance paid by taxes on hospitals and other funds.

The health care industry and advocates who are concerned the state will cut off services to vulnerable residents are likely to object to some of the recommendations.

For example, the study said the state could save up to $270 million if it adjusted a decades-old system of reimbursing nursing homes for care. The consultants also say the state could save money by improving health care offerings in rural areas, where recipients may go to hospitals for basic services instead of lower cost clinics and doctor's offices. And, as noted by the report, Missouri paid $186 million last year to reimburse care by out-of-state patients.

The study comes as Missouri's Medicaid rolls are already dropping faster than in other states. Parson has introduced a budget calling for $50 million less in health care funding because of a drop of more than 71,000 enrollees over the past year. His administration attributed the decrease to an improving economy.

The effort to reduce Medicaid costs will be led by former House Speaker Todd Richardson, a Poplar Bluff Republican who became the state's Medicaid director last year .

"We must now begin the hard work of planning and implementing a transformation of Missouri's Medicaid program," Richardson said. "While the report identifies a range of options for the state to consider, the path forward will ultimately be determined by what is best for Missouri."

More News

Grid
List
JEFFERSON CITY —Gov. Mike Parson will sign an omnibus bill that increases prison sentences and eliminates probation for certain violent... More >>
1 hour ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 6:14:00 PM CDT July 06, 2020 in News
COLUMBIA — Columbia police have arrested a 16 year old boy in connection to a shooting that resulted in a... More >>
1 hour ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 6:09:00 PM CDT July 06, 2020 in News
COLUMBIA — A University of Maryland administrator and head of fundraising will be MU's next vice chancellor for advancement,... More >>
1 hour ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 5:25:36 PM CDT July 06, 2020 in News
MISSOURI — As COVID-19 continues to spread throughout Missouri, state and local officials confirm new case counts daily. ... More >>
2 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 5:00:00 PM CDT July 06, 2020 in News
COLUMBIA —The Columbia/Boone County Health Department trained 15 city employees in contact tracing Monday. But the county is still at... More >>
2 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 4:50:00 PM CDT July 06, 2020 in News
KANSAS CITY- Patrick Mahomes has signed a 10-year contract extension with the Kansas City Chiefs. This new contract will keep... More >>
3 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 4:11:00 PM CDT July 06, 2020 in News
BELLE —Police charged two suspects with assault Monday after a man was found with serious injuries. Police arrested 21... More >>
4 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 3:03:00 PM CDT July 06, 2020 in News
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. You can... More >>
4 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 2:34:00 PM CDT July 06, 2020 in News
COLUMBIA - Emotions over mask-wearing mandates are high. KOMU spoke to MU Health Care infectious disease doctor, Dr. Christelle Ilboudo,... More >>
5 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 2:00:00 PM CDT July 06, 2020 in News
COLUMBIA - Former Missouri basketball star Laurence Bowers kicked off his sixth annual basketball camp on Monday with the largest... More >>
6 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 12:59:00 PM CDT July 06, 2020 in Sports
COLUMBIA— Brian Weimer, major of operations with the MU Police Department, has been named interim chief of MUPD, according to... More >>
6 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 12:52:14 PM CDT July 06, 2020 in News
MISSOURI - The Missouri State Highway Patrol released its 2020 4th of July incident numbers in a news release Monday.... More >>
7 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 12:02:00 PM CDT July 06, 2020 in News
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. You can... More >>
8 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 11:02:00 AM CDT July 06, 2020 in News
(CNN) -- Around 30 years ago, a town in Oregon retrofitted an old van, staffed it with young medics and... More >>
8 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 10:49:19 AM CDT July 06, 2020 in News
COLUMBIA- The Columbia City Council is set to vote on a face mask order at their meeting Monday. The... More >>
13 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 6:21:00 AM CDT July 06, 2020 in News
COLUMBIA - Several community members talked about the need to hold each other along with leaders accountable following a double... More >>
23 hours ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 7:31:00 PM CDT July 05, 2020 in News
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. You can... More >>
1 day ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 6:09:26 PM CDT July 05, 2020 in News
MARIES COUNTY - The Maries County Sheriff's Office recovered human remains near the Gasconade River on Sunday, according to a... More >>
1 day ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 5:26:00 PM CDT July 05, 2020 in News
Columbia, MO
Broken Clouds 89°
8pm 88°
9pm 82°
10pm 80°
11pm 79°