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How to rein in Medicaid costs?

Last week the General Assembly finished up their first ever fiscal session–but not before getting language attached to the Medicaid budget ensuring that any major changes to eligibility or services will be run through the legislature.
We mentioned in an earlier post that Medicaid was soliciting recommendatons for ways to cut the budget.  Over 30 individuals and groups have submitted recommendations for ways to rein in the rising Medicaid costs.  You can see every single proposal on the DHS web site. AACF encouraged agency leaders to consider the following as they look for ways to contain costs:

  • Don’t forget the large economic impact Medicaid has on the state economy.  $100 million can make a difference of $500 million and 5,000 jobs in either direction.
  • Invest today to save tomorrow: Remain committed to the planned substance abuse treatment program and expansion of ARKids First to save in costly health complications down the line due to lack of earlier treatment.
  • Maximize use of community-based treatment over bed-based care whenever possible.
  • Minimize out-of-pocket spending for families. Now is not the time to make families pay more than they are able for the services they need.
  • Move toward a community-based care management model using Arkansas-based providers and networks when possible.
  • Make the best possible use of available data to inform decisions.
  • Purchase quality services that create good outcomes for kids and families.
  • Consider possible savings from quality improvement efforts already under way, such as System of Care, incentives for increased well-child screens, and the medical home model.
  • Look at new ways to improve access to preventive care, especially among children.

For more detail, see our full memo here (starting on page 49) as well as suggestions made by others.