State Plan to Lower Medicaid Costs Scrapped

The state is putting on hold a much-discussed plan aimed at lowering Medicaid costs.

State officials have long talked about transitioning the most expensive Medicaid population – the elderly and disabled – into managed care programs, where private companies would be tasked with helping patients navigate the health system more efficiently and at less cost.

The Department of Community Health put out a request for bids last year. Kathy Floyd of the Georgia Council on Aging was part of the interview process. She learned many private companies can coordinate care efficiently for the physically and developmentally disabled, but managing the elderly was another story.

“The older folks and their challenges is where there’s the least experience with these companies,” said Floyd.

DCH confirmed it’s scrapping the bidding process. A spokesman said Georgia will continue to try and find cost savings, but declined to comment further. In the past, another request for bids was withdrawn because state officials said they all came in “overbudget,” according to Georgia Health News.

About one in five Georgians are currently on Medicaid or Peachcare for Kids, the state health program for low-income children. A recent report by the Georgia Budget and Policy Institute shows Georgia spends less per Medicaid enrollee than any other state in the country.