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EMERY P. DALESIO
Associated Press

RALEIGH, NC (AP) — Gov. Pat McCrory’s health agency is backing away from initial proposals to fix Medicaid costs by hiring a handful of big managed care organizations to run North Carolina’s $13 billion health care system.

The state Department of Health and Human Services on Wednesday presented its framework for revamping Medicaid to an advisory group set up by McCrory. The Legislature is expected to consider changes in May.

The health agency proposes to hold down rising Medicaid costs by expanding the roughly two dozen accountable care organizations operating statewide, as the state’s doctors and hospitals recommended.

The networks of physicians or hospitals get to keep a portion of generated savings if they meet savings and treatment goals but shares the losses if patient costs exceed standards.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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