Florida Considers Complete Medicaid Privatization

[This article posted on April 23, 2010. It is posted within the following categories: CMS, Corporate, via Michael Douglas, MD, MBA.]

Is Florida sensing an “advantage” for its subsidized healthcare delivery? If the legislature’s voting is any indication, the state could be on the path to privatization of its Medicaid program in its entirety. Facing an extreme budget crunch, Florida could allow state-based and national for-profits contracts with the government program to help pay for care.

States’ Medicaid funds are usually matched by government subsidy to assist in the delivery of care to all ages who qualify on a means-tested basis. Traditionally, elderly long term care and care of the disabled have been responsible for the lions share of costs to many states’ healthcare coffers. And in a system where private payers in Medicaid managed care plans are increasingly denying payment to hold on to profit, privatization is an option.

So it doesn’t come as a surprise that HMOs and other plans are lobbying hard for this; the Florida GOP couldn’t be happier.

Republicans in the Legislature say Florida can’t afford to wait, or rising Medicaid costs will overwhelm the budget. Almost all states have some portion of Medicaid recipients in so-called “managed care,” but Florida would be one of the first to put the elderly and disabled requiring special care in the hands of commercial HMOs.

Advocates of taxpayer-subsidized care to this patient population say that the state is “abdicating its care” in this case, as fears of a corporatized healthcare infrastructure threaten care access (to physicians who cannot afford to provide care) in the name of profits while incentivization to get the patient better and out of Medicaid will be sacrificed. Senate Republicans want to move — and fast. Dems “want more data”. Should be a lightning-rod issue in a state with fireworks in yet another political arena. | LINK

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