July 21, 2015
By Dori Zweig,
Florida has saved a substantial amount by switching over 3 million citizens to privately managed healthcare. But these savings could disappear since private health insurance companies have asked for $400 million and a 12 percent increase on premiums. The states counter proposal was to offer a statewide average increase of 6.4 percent. Negotiations are still in process.
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Skeptics argue that Florida was misguided to believe that private insurers could manage the care of Medicaid patients for less than it costs the state, Joan Alker, executive director of the Georgetown University Center for Children and Families, tells the newspaper. “You’re assuming there’s going to be more cost savings because the private market is more efficient. Well, the private market is more expensive than Medicaid,” she adds.
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