UnitedHealth to States: Here’s How to Save Billions on Medicaid


Published On: April 16th, 2010

stethoscopeAnd the race is on! The health overhaul has created a new source of customers for insurers, and as the WSJ reports, one of the biggest new markets is the 16 million people who will be newly eligible for state Medicaid coverage.

UnitedHealth Group is today releasing a report that offers managed-care strategies it says will save states money as they expand their Medicaid rolls. Managed-care Medicaid programs such as UnitedHealth’s AmeriChoice and others offered by Amerigroup, Centene and WellPoint usually take a fixed payment from the government to care for patients. Those insurers are hoping more states move to use outside programs rather than doing it themselves.

The report, by UnitedHealth’s Center for Health Reform and Modernization, lays out $366 billion in savings it says could be reaped from by better coordinating care, moving elderly patients out of nursing homes and into home care as well as updating Medicaid’s technology. Simon Stevens, the center’s leader and UnitedHealth executive vice president, tells the WSJ the report isn’t meant as a new business pitch for AmeriChoice, but a company exec acknowledges it’s ready to sign up states that want to try out the techniques.

Image: iStockphoto

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UnitedHealth to States: Here’s How to Save Billions on Medicaid

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