Report: Medicaid cost Ohio $2 billion less than expected

Associated Press

COLUMBUS

Ohio’s total Medicaid spending was nearly $2 billion below estimates for the fiscal year that ended in June, despite more newly eligible enrollees under an expansion of the program, according to a new report.

The report released Wednesday shows total Medicaid spending was $23.5 billion – 7.6 percent less than projected.

Medicaid Director John McCarthy told The Columbus Dispatch that recent initiatives contributed to the savings, such as shorter nursing-home stays, expanded home-based care for seniors, expanded managed care and capitated reimbursement policies, or pay per patient rather than per patient visit.

“This is a good example of where you have better management tools, you can better manage the program and control costs,” said Greg Moody, director of the Governor’s Office of Health Transformation.

The program also has new automated systems that more accurately determine the eligibility of applicants. As of May, about 90,000 people who were no longer eligible for benefits lost them.

Moody said the state is working to improve primary care by focusing on keeping people healthy rather than treating them when they are sick. He said it also working on more efficiently treating common conditions, such as high blood pressure and diabetes.