Budget cuts loom for Medicaid HMOs

July 2010
Crain's Detroit Business;7/12/2010, Vol. 26 Issue 28, p8
The article reports that a 2.4 percent payment cut will be implemented by Michigan's 14 Medicaid health maintenance organizations (HMOs) due to rate-setting errors and Medicaid program overspending. It is stated that the state is looking at a 50 million dollars rate reduction in the health plans following an increased enrollment in the Medicaid program. It is mentioned that declining margins are expected to be eroded by the 2.4 percent rate cut.


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