Lawmaker urges more oversight of Medicaid managed care

Share this article:
Sen. Charles Grassley (R-IA)
Sen. Charles Grassley (R-IA)
Medicaid managed care contracting should come under increased federal and state scrutiny, a prominent senator said Wednesday.

Accountability “is severely lacking in a program that is spending $7 trillion combined federal and state taxpayer dollars,” said Sen. Charles Grassley (R-IA) at a joint House hearing featuring oversight and health panels. Grassley has been investigating whether states are paying proper reimbursement rates to their Medicaid managed care plans.

Grassley singled out Minnesota and a $30 million overpayment from UCare, one of four contractors that oversee Medicaid programs for the state. The commissioner of the Minnesota Department of Human Services, Lucinda Jesson, testified that she believed the money was a donation, but the state later agreed to share the profit with the federal government.

The former general counsel for the Minnesota Hospital Association, David Feinwachs, said $30 million was in fact reimbursement of state overpayments to UCare, and said Minnesota has inflated Medicaid rates since at least 2003, the Minnesota Star-Tribune reported. The hearing also examined cases alleging poor oversight of Medicaid funds in New York and Texas.

Share this article:

More in News

Bill addressing admission status receives praise

A bill that would require hospitals to give patients a formal notice of their admission status has received strong support from healthcare associations.

Increased 'bed taxes' on nursing facilities warrant stricter federal oversight, report states

States have been increasingly taxing skilled nursing facilities and other healthcare providers to fund Medicaid in recent years, and federal authorities should look more closely at this trend, according to a government report released Tuesday.

Last chance: Tech Awards deadline arrives

Last chance: Tech Awards deadline arrives

There are hours left for innovative long-term care providers to enter the third annual McKnight's Excellence in Technology Awards. Submissions will be accepted until the stroke of midnight tonight.