With state budgets in bad shape, many legislatures are turning to cutting state programs in desperate attempt to stem the tide of deficits. Among these plans is the move to shift Medicaid patients to a managed care program, which is happening in states such as Texas and Florida. Many see this as a way to save millions of dollars for state budgets, but this plan will only cost more in the long run.

According to a report from Bloomberg (emphasis ours):

Bloomberg Government health-care policy analyst Christopher Flavelle looked at managed-care plans in the five most populous states, including New York and California. His Bloomberg Government Study found large managed-care plans provided health care that was significantly and consistently worse than the national median.

For patients, the outcome may mean poorer health care. For states, the outcome may be higher costs when patients return to the system with more serious conditions.

Some states are starting to penalize the private managed-care providers because they perform poorly. The managed-care providers face the choice of doing a better job, or betting that states will continue to tolerate poor results.

This is not the first evidence that managed care systems are not a good solution for Medicaid, nor will it be the last. The only question remaining is whether states will listen, and take steps to course correct.

Managed care is bad for patients, and is also bad news for health care providers such as hospitals, doctors, and pharmacies. Many pharmacies under managed care will be forced to make the choice between remaining open and barely turning a profit, turning away longtime Medicaid patients they can no longer afford to service, or shutting their doors altogether. This is unacceptable.

Join Pharmacy Choice and Access Now, and fight back against managed care for Medicaid!