Medicaid Now Looking to Save Funds: Apparently Billions can be Saved!
Now that the healthcare bill is a very huge reality and all of us know that it is going to get implemented real soon, the insurers are very worried and looking for ways to cut back on spending and save a few bucks. And no! Raising of premiums once again is not the solution!
UnitedHealth Group Inc., the giant health insurer based in Minnetonka, has stressed that the Medicaid program could end up saving a whopper amount of $366 Billion over the coming 10 years if only it agrees to enroll more of the poor who are currently living with private managed-care plans.
In a report released on Thursday, the company has used all its analysis power and suggested that by putting more long-term care patients in managed care could save the country and state governments about $140 Billion in 10 years, and $133 Billion more could be saved by modernizing computer and administrative systems.
UnitedHealth is the largest private provider of all Medicaid benefits, which covers mostly the poor, and then come in the Indianapolis-based WellPoint Inc. and Amerigroup Corp. of Virginia Beach, Va.
Lately, health insurers have been the point of all criticism in the world, mainly because they suddenly chose to increase the premium rates, and while the companies themselves have stressed that it is because of the recession impact, many are seeing it as a way for them to prep themselves for the upcoming increases that would be a result of the healthcare reform. The latter also seem more plausible because reports have revealed that over 2009, health insurers managed to pocket some very profitable returns.
In such a scenario, and the implementation of the healthcare law inching closer, the fact that insurers want to save money through other methods and not want to crush customers further is quite a welcome thing. We just hope there are no "hidden" problems for us there!