Kaiser Daily Health Policy Report Rounds Up Latest Medicaid Legislation, Litigation
The following is a summary of recent Medicaid news from Indiana, Massachusetts, New York and Texas.
- Indiana: The Indiana Dental Association is protesting a proposal that would cut denture benefits from the state's Medicaid program to save the state $17.1 million over two years. Currently, the state's Medicaid program covers $1,571 for a full set of dentures and follow-up visits to a dentist over six to eight weeks. But with expenditures for Medicaid dental care services expected to rise from $110.4 million this year to $156.4 million by 2003, Medicaid officials are "under pressure" to cut spending and appear "unlikely to abandon" their plan to cut denture benefits, the Indianapolis Star reports. The plan also is "unpopular" among state lawmakers. Members of the state House Public Health Committee have written a letter to Gov. Frank O'Bannon (D) urging him to retain the denture coverage (Corcoran, Indianapolis Star, 6/7).
- Massachusetts: State pharmacists maintain that the state "is trying to stiff them for millions of dollars in unpaid Medicaid bills." Because of computer problems between June 1999 and January 2001, the state failed to automatically update pharmacy reimbursement rates, and "hundreds of pharmacies" were reimbursed less than the cost of the drugs they dispensed to Medicaid beneficiaries. To determine how much to pay the pharmacists, the state cut the total figure owed in half because of concerns about the data used to calculate the rates. Some pharmacists say that the resulting formula means that the state would reimburse them "as little" as 10 cents on the dollar -- an amount they say and would "be devastating" to their pharmacies. However, about 100 pharmacists have accepted the state's offer to pay them under the new formula. Remaining pharmacists have two weeks to follow suit (Powell, Boston Herald, 6/8).
- New York: In response to increasing Medicaid program costs, state lawmakers are considering three bills that would change the program. The first bill would cap counties' Medicaid costs at their current levels and "tie future spending increases after 2002 to the consumer price index." The second bill would make the state responsible for all future Medicaid cost increases. The third bill would require the state to provide counties with "timely" rate change information and allow the localities to "competitively bid for drugs." Albany County Executive Michael Breslin said that if Medicaid costs "continue to escalate," counties would have to raise property taxes (Benjamin, Albany Times-Union, 6/8).
- Texas: To settle a grand jury investigation into whether Electronic Data Systems overcharged the state for managing the Medicaid program, EDS has agreed to pay the state $3.4 million. Under the agreement, EDS did not admit any wrongdoing and will not face criminal indictments. The Travis County District Attorney's Office had alleged that National Heritage, an EDS subsidiary, inflated its expenses by charging part of its $270 million investment reserve as part of its expenses for managing the Medicaid contract. With the dispute resolved, the state will begin seeking proposals for a new management contract (Copelin, Austin American-Statesman, 6/7).
