Ohio bill would revamp Medicaid system

COLUMBUS, Ohio (WCMH) — Bipartisan lawmakers in both chambers of the legislature are proposing a major overhaul to Ohio’s Medicaid system, which they say would make things easier on patients, ensure public transparency, and potentially save the state millions.

State Senators Louis Blessing (R-Colerain Twp.) and Beth Liston (D-Dublin), along with Representative Karen Brownlee (D-Symmes Twp.) say Ohio’s current Medicaid system, in which the seven different insurance providers cover most of the state’s Medicaid recipients, is too costly and inefficient.

“We do not believe that this complexity serves the people of Ohio,” Liston said. “Every time we’ve simplified it…things have been easier for patients and providers.”

Liston also argued the state’s reliance on managed care organizations (MCOs) means, “we have a very limited view of how money is being spent by the organizations that control the bulk of it.”

Liston, Blessing and Brownlee have introduced the Medicaid Savings Act, which would require Ohio to contract with one or more administrative services organizations to perform all administrative functions for the state’s Medicaid program. Blessing compared the plan to similar models adopted by Connecticut, which according to Blessing, resulted in $4 billion in savings over 13 years.

Blessing said by adopting that same model, Ohio could save up to $850 million a year—all of which would be reinvested back into Medicaid.

 “The changes proposed in this bill will ensure that more taxpayer dollars will be spent on direct patient care and less on administrative costs for the insurance companies that administer these programs,” Brownlee said.

The sponsors acknowledged their proposal is likely to face heavy resistance from the managed care organizations that currently operate Ohio’s Medicaid program, but legislative leaders like Senate President Rob McColley (R-Napoleon) agree something needs to be done.

“I think both sides of the aisle are looking at the increase in expenditures in Medicaid and saying this is simply unsustainable,” McColley said. “We need to be open to any efforts to overhaul that are going to save money and still maintain good patient outcomes.”

The Senate version of the Medicaid Savings Act, Senate Bill 386, received its first hearing before the Senate Medicaid Committee on Tuesday. House Bill 780, sponsored by Brownlee, has yet to receive a hearing.