Leavitt meets Jindal to discuss Medicaid Changes

In a recent report by New Orleans Times-Picayune, HHS secretary Mike Leavitt met up with Louisiana Governor Bobby Jindal and other policy makers last week. The meeting was held to discuss possible changes to the state’s Medicaid program and other issues. It’s been eighteen months since the state rejected Leavitt’s plan to reorganize safety net funding.

The meeting dealt with three key issues:

a)      Settling the claims that the federal government had actually overpaid Louisiana $600 million for Medicaid.

b)      To change the Medicaid program into an HMO-style system where beneficiaries would be free to opt for a managed care plan as well as use the local clinics.

c)       To reach a decision on the amount to be demanded as federal reimbursement to the state for the damage done to the Charity Hospital as a consequence of Hurricane Katrina.

 

Alan Levine, Louisiana Department of Health and Hospitals Secretary said that these changes to the Medicaid program would in no way disturb the flow of charity care funding. Instead those funds that have already been allocated by the state and federal government shall be used. If this proposal is accepted, the changes will first affect three major markets as soon as 2010, these being New Orleans, Baton Rouge and Shreveport. Levine also said that as of now it is unclear whether the proposed changes will reduce the number of uninsured or only affect current beneficiaries.

 Increasing health care costs are driving more and more states to come up with alternate measures to deal with the expense. How successful these changes will be remains to be seen.