Bradenton Herald
July 18, 2015
By Daniel Chang,
By switching to privately managed health care for more than 3 million poor, disable, and elderly residents, Florida has achieved one of its primary goals: cutting costs for Medicaid. The savings might not last long because the private companies that took over the insurance for Florida’s Medicaid patients are asking for nearly $400 million and a 12 percent increase starting on September 1.
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Joan Alker, executive director of the Georgetown University Center for Children and Families, said Florida was misguided to believe private insurance companies could manage the care of Medicaid patients, among the most vulnerable populations, for less than it costs the state — unless those insurers reduced the amount of care provided. “This is something I’ve been raising all along since 2005,” she said.
“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. Why would you assume it’s going to provide cost savings unless it cuts back on needed care? This has always been a fundamental concern.”
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