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Medicaid Managed Care Costs Expected To Grow Next Year

A map representing the 13 regions for Medicaid Managed Care
Agency For Healthcare Administration

Florida’s Medicaid Managed Care program is expected to get more expensive. State economists expect the cost to grow by more than a half-billion dollars next year.

State economists have increased their estimate for the Medicaid Managed care program by $75 million  for the 2016-2017 fiscal year. They project the $23.5 billion program will increase by $577 million.

Florida economist Amy Baker says that’s due to more people using services. Meanwhile insurers are piling on with a 12 percent rate increase request and $400 million dollar ask. The state is proposing giving them less than half of that.

Insurers say they’re currently running $500 million in the red, and blame high usage by Medicaid patients and pharmaceutical costs. Governor Rick Scott has blamed hospital contracts and is asking the state to investigate whether hospitals are overcharging the insurance companies in the managed care system.

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Lynn Hatter is a Florida A&M University graduate with a bachelor’s degree in journalism. Lynn has served as reporter/producer for WFSU since 2007 with education and health care issues as her key coverage areas.  She is an award-winning member of the Capital Press Corps and has participated in the NPR Kaiser Health News Reporting Partnership and NPR Education Initiative. 

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