Kaiser Daily Health Policy Report Highlights Medicaid Developments In Missouri, Virginia
April 11, 2007 – 4:20 pm | posted in MedicareNewspapers recently reported on Medicaid developments in Missouri and Virginia. Summaries of the coverage appear below.
- Missouri: The Missouri Senate on Wednesday gave tentative approval to legislation that would overhaul the state’s Medicaid program, the Kansas City Star reports. Lawmakers rejected a provision that was intended to help the state identify fraudulent claims but approved a provision that would allow women who make up to $9 per hour and do not have access to employer-sponsored health benefits to receive Medicaid coverage of contraception, pap smears and other women’s health services (Wagar, Kansas City Star, 4/5). The state Senate on Tuesday voted against an amendment to the Medicaid overhaul bill that would have increased the income eligibility limit for beneficiaries. The amendment, introduced by state Sen. Victor Callahan (D), would have raised the annual income eligibility limit from 24% of the federal poverty level to 63% of the poverty level. The amendment also would have changed Medicaid rules to disregard two-thirds of a family’s income when calculating eligibility. State Senate Majority Leader Charlie Shields (R) said that looser eligibility requirements could cause some employers to not contribute to employee health care. Callahan had suggested a tax to offset Medicaid costs on employers who have large numbers of low-income workers and who do not offer health benefits. Shields said the Medicaid overhaul bill includes a provision that would provide a state subsidy for low-income workers to purchase health insurance (Wagar, Kansas City Star, 4/4).
- Virginia: Virginia is considering lowering payments to Medicaid HMOs, Patrick Finnerty, director of the state Department of Medical Assistance Services, said on Tuesday, the Richmond Times-Dispatch reports. Finnerty said HMOs’ profits from Medicaid have been increasing, and payments should reflect HMOs’ success at cutting costs. Payments might be reduced or modestly increased this year, compared with the 4% to 7% annual increases in the past, according to Finnerty. An independent consultant is calculating payment rates that will take effect in July. In 2006, the department decided to cap HMO earnings on Medicaid business at 8% — any earnings above that rate must be returned to the state. The move was intended to ensure that HMOs do not overcharge for their services. HMOs made a combined profit of more than $98 million in 2006, or about 8% of revenue. Two HMOs, Amerigroup and CareNet, last year reported earnings of 16.9% and 12.2%, respectively (Ress, Richmond Times-Dispatch, 4/4).
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