News -> INDReporter THU, AUG 25 10:31AM by Heather Miller

Medicaid outsourcing falls largely in Jindal’s lap

When the state starts the process of turning over $2 billion in public money to private insurance companies to execute the state’s Medicaid program, the reins will be largely in the hands of Gov. Bobby Jindal — and the Legislature won’t see much in the way of the program’s details or potential complications.

A compelling column published in The Baton Rouge Business Report reveals that the new Coordinated Care Networks system, the braindchild of Jindal that dates back to his state Department of Health and Hospitals days, will entrust the health care of 850,000 Louisiana residents (mostly children) to five private insurance companies. The administration has estimated $135 million in annual savings through privatization, which begins early next year. Eventually, the state’s 1.2 million Medicaid recipients will all be managed by the private sector.

There were very few, if any, legislative gadflies that stood in Jindal’s way when he pushed for his plan’s passage. As The Business Report explains below, one lawmaker who criticized the plan was silenced by the legislative process. And when the Legislature approved a bill that would allow the state to terminate the private health care contracts after three years if the program wasn’t delivering, Jindal vetoed it:

Ordinary citizens who pay for part or all of their health insurance have to deal with private companies, so why should Medicaid patients be different? Lawmakers may have accepted that reasoning, if they were asked, but they weren’t.

In the 2010 session, one outspoken critic of privatization, Sen. Joe McPherson, D-Woodworth, had a provision inserted in the appropriations bill in committee to require legislative approval of a final healthcare plan.

When the bill reached the floor, a large set of what were supposed to be clean-up, technical amendments were offered for one up-or-down vote. According to Senate minutes, McPherson complained that, on short notice, there was no way of knowing what was in the many pages of amendments. Senate Finance Committee Chairman Mike Michot, R-Lafayette, assured him all the changes were technical.

After the bill passed, McPherson discovered that in that stack of allegedly technical changes, his amendment requiring legislative approval had been deleted and one sentence was added, authorizing the administration to establish and write rules for “Coordinated Care Networks” for Medicaid.

Privatization marches forward, and the babies will lead the way.

One hopes for the best for them. The likelihood, however, of the sweeping transition taking place without complications, mistakes and unintended consequences is as remote as no political indictments being handed down in the next year.

Read more here.


Comments (12)add
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written by clint reno , August 25, 2011 - 05:51 pm
So much for Michot's assurances...
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written by resident , August 25, 2011 - 06:27 pm
Oh ok, so you're saying that private insurance companies can take on all of these cases, save $135 million dollars on top of what it already costs to run this, and THEN they are going to make a profit on top of that?

And what do you think is going to give?
Where do you think the savings is going to come from?
I'll tell you: they will cut everything they can out of those policies, they won't be worth they paper they are written on.

So yea, great, you'll save some taxes, and some kid is going to die because they are not "worth" it to the insurance company.

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written by the original northsidian , August 25, 2011 - 08:05 pm
So Michot lied to McPherson?
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written by BoFred , August 25, 2011 - 08:09 pm
this is WAY too fat a cash cow for the govna NOT to share with his buddies, and besides, it might give him the support for his presidential race... You can bet this will fall on the backs of the employees or the taxpayers when it goes bust.
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written by NORTHSIDIAN SHOTGUN , August 26, 2011 - 12:42 pm
WE may be a bunch of idiot couillions responsible for electing this cash greedy hog Jindal , but "PRESIDENT, c'mon there are not that many red blooded Americans on this earth, who are stupid enough to elect this self & crony serving politician to the highest office in the United States with a clear path to all the chikees in the hen house, as I said, the entire nation is not stupid, at least not stupid twice in succession......
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written by William Morvant , August 26, 2011 - 12:55 pm
by resident "so you're saying that private insurance companies can take on all of these cases, save $135 million dollars on top of what it already costs to run this, and THEN they are going to make a profit on top of that?
-------------------

I am surprise the savings is not more. You do know that "government worker" is an oxymoron.
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written by Buck , August 26, 2011 - 04:49 pm
Our Medicaid program is administered so poorly, #50 in the nation, that priviate companies can easily manage the Medicaid population using sophisticated tools that identify fraud, identify the unhealthy populations so that they can be moved into programs that improve their health, and offer operational efficiencies that allow them to still make a profit. If you research the states that were savy enough to move from the status quo, you can see that quality has improved and costs have decreased. Just saying...
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written by resident , August 26, 2011 - 08:28 pm
"I am surprise the savings is not more. You do know that "government worker" is an oxymoron."

Yea, that's because you don't know what the hell you are talking about. Typical case of the brainwashed fox news junkie. I'm surprised you know what the word oxymoron means.

Sorry but you are just wrong. Sure you can find stories of people who were grateful to be moved out of a full time care facility and into their homes. But you're not looking at the whole picture. They are saving money by forcing people out of nursing facilities and into their homes. That may be fine for some, but you'll soon be finding out that great grandma just got evicted from the nursing home and will now be staying, well...at your place. Oh and then next they won't be paying for that full time nurse it will be part time and then very part time, and then not at all.

You people just don't get it. Corporations and private businesses have ONE goal. MAKE MORE MONEY. They will do it any way they can and sacrifice anyone and anything in their way.

Sure it sounds great at first, "saving tax payers money." But then they will start figuring out where to cut corners. And they will cut and cut and cut until it gets SO FREAKING HORRIBLE that people will freak out and the government will have to step in and change the rules because the corporations have figured out how to get every penny they can in profits.
And the patients are suffering and dying because of it.

I suppose you think these governmental agencies just suddenly appeared for no reason. The reason they are there is because corporations and private businesses have a DOCUMENTED HISTORY of screwing their customers and their employees and the government.

It's really sad to see so many people have been brainwashed by big business into thinking it's "The People" Vs. "The Government".
Too dumb to realize that "The People" IS "The Government" and it's "WE THE PEOPLE" vs. BIG BUSINESS.

Likewise you've been brainwashed into thinking Unions are Evil. And what is that argument? Oh yea, Unions make Manufacturers PAY THEIR EMPLOYEES TOO MUCH and so they can't make a profit. Really? That's the argument? That's why the US Auto industry took a dive huh? No it wasn't the executives who demanded cheaper parts, and cars that would fall apart in 5 years so they could sell more cars. No of course not. It was the employees demanding too much money and demanding, oh my god, health insurance. How greedy of them.

You people are such suckers.

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written by ragin_cajun , August 28, 2011 - 02:41 pm
" Unions make Manufacturers PAY THEIR EMPLOYEES TOO MUCH and so they can't make a profit. Really? That's the argument? "

Yes. It is. Can you break it? I don't think there's any doubt that unions driving up wages in the auto, aerospace, chemical, textile industries have made those businesses MUCH less profitable. As a consequence, corporations have moved those operations overseas where labor is cheaper.

Also, I think you are seriously misinformed about just what unions in these industries demand. Health insurance? They expect much more than that in the auto industry, for example. Auto unions demand pensions, annual pay increases, job banks, they approve or disapprove layoffs instead of management, they have benefits people in Louisiana have never heard of--being from a right to work state.

I had 2 college professor, one retired from Ford the other worked there for 10-12 years, who would occassionally wow their clases with all the things that auto unions provide for their membership. Health insurance? No auto union would be satisfied with wages, health insurance, and safe working conditions in this day and age.
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written by resident , August 28, 2011 - 04:31 pm
"Unions... have made those businesses MUCH less profitable. As a consequence, corporations have moved those operations overseas where labor is cheaper."

And there is the heart of the problem.

Yes, less profitable, to who? Thats right the lazy ass shareholders who do f-ing nothing but sit on their ass and collect a check. That's who you are worried about? Really?
F the shareholders. A companies first priority should be to the people who DO THE WORK, Not the rich scumbags who play golf all day.

And so the solution is what? Send the jobs overseas.

Honestly I think CEOs who send our jobs overseas should have their citizenship revoked and their asses kicked out of this country.

But obviously you are totally cool with shipping our jobs overseas because shareholders are more important that workers. Right RC?

If a business can't take care of their employees then they have failed and should not be in business. Period.



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written by ragin_cajun , August 29, 2011 - 12:20 pm
"Thats right the lazy ass shareholders who do f-ing nothing but sit on their ass and collect a check."


Nice job moderating these comments, editors. Those shareholders, along with the lazy ass bondholders, are the people who finance the operations of a business. Those shareholders have produced wealth in excess of what they have consumed, and have invested that excess wealth in a company.

Those lazy ass shareholders are the owners of the company. I AM worried about them. My mom owns shares in ATT. My kids' college fund is invested in Verizon. I'm not rich and I don't play golf all day.

"I think CEOs who send our jobs overseas should have their citizenship revoked and their asses kicked out of this country. " I think socialist/populist union leaders who support radical left politicians with members' dues should have their citizenship revoked and be kicked out the country.

"If a business can't take care of their employees then they have failed " No. A business does not exist to "take care of employees". That's what mommies are for. Businesses exist to make a profit. If they can't do THAT, they should not be in business.

I'm glad you're not running my company.
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written by Gaius Cilnius Maecenas , August 31, 2011 - 06:15 pm
[R]agin_cajun:

We have another personal act in common. My mom owns AT&T shares as well. This has been in our family's portfolio for more than 50 years.

Health services should never be subjected to private corporate interests. This is why we have an extremely poor health delivery system in this country. 20% of Louisianians do not even have health insurance. That is an aweful lot of people floating around here without access to competent health care.

Businesses stealing tax money for incompetent health care (they work for Wall Street) to our people should be a crime. As the quality of our healthcare system deteriorates even further, more and more of our vulnerable population will simply die or commit suicide. Prison systems, education systems and healthcare systems should be subject to professional governmental systems. We simply waste too much money with poor outcomes, when we pretend that private corporate enterprises are even competent in these matters. It is a conflict of interests! Making profits and delivering competent needed services is, indeed, an oxymoron [Greek, "sharp vs. dull"]. Of course, these silly healthcare corporations will spend tax revenue (which they receive to run their business scam) to promote delightful ads on our television as to what a wonderful job they are doing!

P.S. I learned about that 20% figure from the recent Free Health Clinic in New Orleans last Monday on a national news program. I suspect it is actually even worse.
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