Thirty-six states that rely on private managed-care programs to provide medical services to all or some of their Medicaid recipients are facing added costs caused by the Affordable Care Act, according to a report by the actuarial consulting firm Milliman.
The health care law imposes an annual tax on private health insurance plans, designed to recoup some of the profits earned by insurers from the new customers they are likely to gain because of the law.
The tax, however, also covers private plans that run Medicaid managed-care plans. These insurers, and ultimately the states, face up to $15 billion in added costs over 10 years for their share of the tax.
This could end up hurting Medicaid recipients, says Josh Archambault, a senior fellow at the Foundation for Government Accountability.
“The tax increases the cost of running Medicaid, and many states will further cut reimbursement rates to providers to compensate,” Archambault said. “This reduction will cause...
A new study by the Office of Inspector General for the Department of Health and Human Services found half of all providers listed in Medicaid managed care plan are not available to new Medicaid patients, either because they are not at the listed location or they are but aren’t accepting new Medicaid patients.
For doctors who are accepting new Medicaid patients, the average wait to get an appointment is two weeks, with a quarter of those having waits of one month or longer.
The study’s findings...