State looks to overhaul portions of Medicaid

Facing a $60 million shortfall by July 2012, state officials announced an overhaul to Arkansas’ Medicaid program that would change the way doctors are reimbursed for certain services from on a treatment by treatment basis to one repayment for a myriad of services provided around one health issue.

The areas targeted include pregnancy and neonatal care, ADHD, type 2 diabetes, back pain, cardiovascular disease, upper respiratory infections, development disabilities, long-term care and prevention, according to Arkansas News.

This change should save the state a chunk of money without having to cut services, Beebe said, explaining that his goal is to move” away from a fragmented, volume-driven fee-for-services system to one that pays teams of providers for episodes of bundled care.”

The Arkansas Department of Human Services has hired McKinsey & Co., an international consulting firm, to study the effects of the switch before actual implementation. The $3 million contract is so far halfway fulfilled by Blue Cross Blue Shield of Arkansas with the hopes of making up the other half in federal grants.

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