State Medicaid news: California, N.C. officials explore cost-saving measures

Media outlets report proposals to reduce Medicaid costs in California and North Carolina. In Maryland, the leader of a company with a $200 million Medicaid contract says he has not been told why that contract is being probed by state and federal investigators.

Sacramento Bee: Labor-Backed Plan Would Fine Large Employers Who Send Workers To Medi-Cal
A new and controversial proposal in California's health care overhaul calls for fining large employers if the wages they pay are not high enough to keep workers off Medi-Cal rolls. Assemblyman Jimmy Gomez will formally unveil the measure as Assembly Bill 880, perhaps today, in a drive sponsored by the California Labor Federation and United Food and Commercial Workers (Sanders, 4/12).

California Healthline: Medi-Cal Cut Could Force Some Rural Hospitals To Close Nursing Units
A looming cut in Medi-Cal provider reimbursement rates could cripple the Eastern Plumas Health Care facilities, and the banks know that, [Tom] Hayes said. ... "We had our line of credit cancelled by the bank when they heard about this." "This" is a 10 percent Medi-Cal rate reduction that the state imposed in 2011; the rate change is still in limbo, awaiting the outcome of legal challenges. … According to state officials, California will save about $50 million a month if the Medi-Cal cut takes effect (Gorn, 4/11).

North Carolina Health News: State Health Leaders Defend Overhaul Of 'Broken' Medicaid System
New Secretary of Health and Human Services Aldona Wos has had to get up to speed on state government -- and fast -- since arriving in Raleigh in January. Now three months into her time in office, Wos and her Medicaid director, Carol Steckel, said they have a vision and a plan for revamping the state's Medicaid program and putting the Department of Health and Human Services on firm financial footing (Hoban, 4/12).

The Associated Press/Washington Post: CNSI Official Says He Has No Idea Why $200M Medicaid Contract Is Under Federal Investigation
A top official with the Maryland company whose nearly $200 million Medicaid contract with the state has been cancelled said the firm has never been contacted as part of an ongoing federal probe into the contract award (4/12).

http://www.kaiserhealthnews.orgThis article was reprinted from with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News, an editorially independent news service, is a program of the Kaiser Family Foundation, a nonpartisan health care policy research organization unaffiliated with Kaiser Permanente.



The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
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