Health Secretary Says Managed Care Will Keep Medicaid Budget Balanced

by Tony McVeigh on March 4, 2011

Kentucky Health and Family Services Secretary Janie Miller is confident managed care will produce enough savings to keep the state’s Medicaid budget balanced.

Miller says the proof can be found in other states with managed care programs.

“There are a number of studies out there that are independent studies that document managed care savings. So, they prove that they can save money, if they’re done properly. Percentage savings estimates vary according…I’ve found studies that range from one percent to 20 percent, depending on the population of the services managed and the areas of the state that they covered,” she says.

Governor Beshear wants to shift second-year funds forward to balance the Medicaid budget, and make up any second year deficits with savings from managed care. The Democratically-controlled House agrees with his plan, but the Republican-controlled Senate wants across-the-board cuts to state agencies, including education. House Republicans oppose cuts to education. The debate is dominating the waning days of the legislative session.

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