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McCrory offers plan to privatize NC Medicaid risk


Associated Press

RALEIGH, NC (AP) -- Gov. Pat McCrory's administration wants to privatize North Carolina's $13 billion Medicaid program to hold down the spiraling costs of delivering health care for the elderly and disabled.

State Health and Human Services Secretary Aldona Wos says plans are to recruit about three big managed-care providers who compete as they deliver medical, mental, and dental services throughout North Carolina.

Wos says the plan will hold down rising costs to taxpayers while erasing administrative roadblocks she says frustrate doctors and hospitals who accept Medicaid patients.

Wos says the plan is to pay the managed-care providers a set monthly price for each Medicaid patient enrolled, then let those companies take the risk of cost overruns if they can't keep within budget.

The change is targeted for a July 2015 start.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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Sounds weird

NC's Medicaid system works and apparently well when compared to other states.
That said - a recent Time magazine article clearly pointed out the problems with a lot of medical costs and its not at the medicare/caid level or the state level it's in the billing at the hospital.
By injecting a private, for profit enterprise into the mix we will only substitute profit costs for administrative costs and we will lose control of it completely.
I'm all for free markets, but as the Time magazine article indicates the free market for medical care is not working.
You need to subscribe to read the entire article but here's some highlights from it:

We need to get billing and hospital pricing under control before we can get to a place to control medicare/caid costs


Who Benefits?

I wonder which of the Gov's campaign contributors this will benefit.....