Carolina Journal’s Dan Way reports on a new way to serve Medicaid patients that is bearing fruit in other states, including Florida. Here’s Christie Ferrerra of the Foundation for Government Accountability.

Backers of the risk-based managed care model used in Florida say it forces medical providers rather than taxpayers to absorb any losses if the costs of care exceed the amounts agreed on in state contracts. Moreover, the Florida model allows Medicaid recipients to choose among a variety or providers and plans, rather than granting most Medicaid care management to a state-sanctioned monopoly, Community Cares of North Carolina.

The foundation projected what other states would save if Florida’s pilot project were applied to their Medicaid programs, Herrera said. 

“What we found was, in North Carolina, $2.7 billion in savings if North Carolina implemented Florida’s reform,” Herrera said. Of that, $1.3 billion would be saved annually in the disabled population, and $1.4 billion from the Medicaid-eligible population, she said. For the state budget year ended June 30, North Carolina’s Medicaid spending was $14.2 billion.