Managed Care Troubles South Texas Docs
State lawmakers got an earful today from people in South Texas dealing with the implementation of managed care – a system that was supposed to save more than $1 billion by targeting fraud and changing the payment system for Medicaid and the Children’s Insurance Health Program.
Carlos Cardenas with the Texas Medical Association told a Senate Committee today that reimbursement rates for doctors have been sharply reduced.
“In one year – after all reductions are factored in – some providers reimbursement rates was cut more than 40 percent,” Cardenas said. “Without immediate action by the Texas Legislature and the Health and Human Services Commission, the continuation will erode our safety net of care. Providers have already begun exiting our South Texas community.”
Under managed care, private organizations receive set monthly payments from the state to provide health services. Advocates say it has resulted in cost savings in other parts of the state.