Insurer Sues Minnesota Seeking Change In Medicaid Managed Care Contract
Medica says insurers are losing too much money under the agreement. It is not trying to overturn the 2017 contract but is asking the state to rebid 2018.
Pioneer Press:
Health Insurer Medica Sues Minnesota Over Medicaid Contract
One of Minnesota’s major health insurance companies says the state Department of Human Services broke the law when it negotiated new contracts with competing insurers to run Medicaid and MinnesotaCare. Medica, a Minnetonka-based nonprofit insurer, sued the state Tuesday over the Medicaid and MinnesotaCare contracts. It’s not trying to overturn the new 2017 contracts, which are already in the process of being implemented. Rather, Medica wants a judge to force DHS to bid out contracts again for 2018 instead of continuing the current contracts into 2019 or later. (Montgomery, 3/14)
Minnesota Public Radio:
Medica Sues Minn., Alleging Competitors Got Better Rates
Medica on Tuesday sued Minnesota's Department of Human Services, alleging the state gave preferential treatment to competitors in contracts for state-sponsored health care. Medica and several other plans together serve the 1.2 million people enrolled in MinnesotaCare and Medical Assistance. Medica manages care for about 320,000 of those enrollees. (Sepic, 3/14)
And a surprise announcement from Mayo --
The Star Tribune:
Mayo To Give Preference To Privately Insured Patients Over Medicaid Patients
Mayo Clinic’s chief executive made a startling announcement in a recent speech to employees: The Rochester-based health system will give preference to patients with private insurance over those with lower-paying Medicaid or Medicare coverage, if they seek care at the same time and have comparable conditions. The number of patients affected would probably be small, but the selective strategy reveals the financial pressures that Mayo is facing in part due to federal health reforms. (Olson, 3/15)