State Medicaid Program to be Funded by HMO Fee in Georgia

On Thursday, the Georgia Department of Community Health board approved a plan to charge commercial HMO’s fees just like managed care companies. This is being done to offset a 5% increase in program funding as reported by the Savannah Morning News. 

Rhonda Medows, Community Health Commissioner said that the changes are as required by new federal rules. By delaying and not revoking an increase in doctor and hospital reimbursements to July 1, 2009, hospitals would have enough reason to avoid layoffs and other drastic measures.

Meanwhile Jimmy Lewis who is the Chief Executive Officer of Home Town Health (an organization of small and rural hospitals) made a statement saying that they may have riled a giant. He said that private insurers may increase premiums and renegotiate contracts with health providers.