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

Apr 15 2013

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).