Reshaping Medicaid to Save $

None by KCPW

(KCPW News) Congress is sending states a dual message about state-run health care programs for the poor: more local control, less money. Utah Department of Health Director David Sundwall says Congress can't be blamed for cutting back on Medicaid funding and inviting states to get creative about covering the poor. In fact, Dr. Sundwall says it's the only way to get a handle on the exploding costs.

"To make Medicaid more like a private insurance program, promote personally responsibility and cut back on specific benefits," says Sundwall.

He adds Utah is already successful with the new flexibility, placing some Medicaid recipients on managed care programs and offering community-based care in lieu of hospital stays. Other states are pushing prevention programs that will reduce long-term health care costs, and in West Virginia, patients will soon be required to sign an agreement promising to keep doctors' appointments, take medication and use emergency room visits sparingly.

Judi Hilman of the Utah Health Policy Project says cost-savings lie not in placing more burdens on patients or shaving offerings.

"Really pay attention to what most states have done to contain Medicaid costs," says Hilman. "They've done preferred drug lists and bulk purchasing of pharmaceuticals. The way that we purchase our pharmaceuticals is the key to most of the savings we need to maintain the program."

Utah lawmakers have consistently rejected proposals to create a preferred drug list for Medicaid, saying the cost-savings are unproven. Instead, they legislature's new Medicaid Interim Committee seems poised to study more ways to trim health benefits for the poor. Dr. Sundwall says Utah's Medicaid offerings are already some of the most streamlined in the nation.

Email to a friendPosted in KCPW Newsroom. Copyright 2008 KCPW