To Cap Medicaid, Florida Looks To Managed Care Florida's annual Medicaid bill runs in the billions — it's nearly one-third of the state's budget. As Florida struggles to close a budget shortfall of $4.5 billion, Medicaid is a target for cuts. Often, that means moving Medicaid recipients into managed care.

To Cap Medicaid, Florida Looks To Managed Care

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This is MORNING EDITION from NPR News. Good morning. I'm Renee Montagne.


Florida's legislature begins its annual session in Tallahassee today. Like many states, Florida faces a huge budget gap. Lawmakers hope that cuts in Medicaid will help close that hole. The program gives health insurance to the needy, makes up a big chunk of most every state's budget. As part of our series following Florida's budget process, NPR's Greg Allen reports on how the state hopes Medicaid cuts will save a billion dollars a year.

GREG ALLEN: The head of Florida's Senate, Republican Mike Haridopolos, introduced a plan to overhaul the state Medicaid program this way.

MIKE HARIDOPOLOS: We want to make sure, first and foremost, that it is a system that is improving the quality of care, improving the access to care. And then and only then, we'd start looking at costs.

ALLEN: To bring down that cost, Florida's legislature is planning to dramatically revamp the way the state delivers health care to those on Medicaid.

JOE NEGRON: We want to get out of the check-writing business and into the contract-compliance business.

ALLEN: State Senator Joe Negron has put together a plan that would scrap the old fee-for-service model and replace it with managed care. Negron want to negotiate contracts with health care providers, which would agree to deliver care to the state's three million Medicaid recipients for a predetermined fee. Negron says it would give the legislature a way to effectively cap what it spends each year on Medicaid.

NEGRON: We're going to decide how much we want to spend on Medicaid. We're the appropriators and we're saying that the state agencies that work with us in implementing, they do not have the authority to spend beyond what we appropriate.

ALLEN: But it also means that Medicaid recipients may be seeing fewer benefits. At a time of tight budgets, Republican State Senator Steve Oelrich said, in a recent hearing, that's inevitable.

STEVE OELRICH: Just like the triage nurse separates the sore throat from the stroke and the heart attack, what we've had to do here is take our limited resources and apply them where they can be most effective.

ALLEN: Republicans control the governor's mansion and both chambers of the state legislature, so it's clear some version of Medicaid reform is likely to pass. That doesn't mean Democrats are going along quietly. Democrats like Representative Joe Gibbons.

JOE GIBBONS: And the story they give you is, you know, we have to treat this like we do our family checkbook at home. And I'm sorry, but I'm really tired of hearing that story.

ALLEN: In Hollywood, Florida last week, Democrats held a workshop looking at some of the proposed changes in Medicaid. Gibbons rejected the idea that with shrinking revenues spending on Medicaid would have to be capped, whatever the consequences.

GIBBONS: If my family checkbook at home is short, you know what I do? I get a second job. I don't eat three days instead of seven. I get a second job. What they're telling us we've got to do is you got to eat three days.

ALLEN: For the past five years, nearly all Medicaid recipients in this county have been part of a pilot program that puts them in privately run managed care plans. Many in the legislature now want to expand that program statewide. At the workshop in Hollywood, a succession of doctors, care providers, advocates and Medicaid patients all had the same message: Managed care has been a disaster.

RICHARD STEIN: My friend has had four plans in four years. She's had to change doctors every year.

ALLEN: Richard Stein is a retired lifeguard who came to speak on behalf of a friend, Cynthia Bowersox. Bowersox is homeless and has multiple health problems.

STEIN: She currently has throat cancer. It has taken four months to get a biopsy on the throat cancer due to the impediments placed by the HMOs for authorizations.

ALLEN: Greg Allen, NPR News, Miami.

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