Independent study confirms merits of Medicaid managed care          Send a link to a friend

[JUNE 1, 2005]  SPRINGFIELD -- An independent study released in May strongly supports a proposal by Senate Republican lawmakers that could save the state of Illinois millions of dollars each year and improve the quality of care for patients by implementing a greater degree of managed care principles in Medicaid.

State Sen. Bill Brady, R-Bloomington, said the study by the Lewin Group, a leading independent health care consultant, suggests managed care reforms could save taxpayers approximately $1.5 billion in Medicaid costs over a five-year period.

"Medicaid costs have escalated at an average rate of 8 percent since fiscal year 1999," Brady said. "Left unchecked, Medicaid will claim larger allocations of the budget at the expense of other programs, including education. The use of managed care reforms in the Medicaid system will not only save millions each year, it will give patients access to a better quality of health care."

The study points out that Illinois "stands in stark contrast to virtually all other large states in the modest degree to which its Medicaid program has adopted managed care techniques." The Lewin study provides supporting evidence that "throughout the country states have adopted successful managed care models, achieving their goals of decreased medical costs, better access to services and increased quality of care."

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Furthermore, the study concludes that "an exceptional opportunity exists for Illinois to both improve the coverage its Medicaid beneficiaries receive and to achieve large-scale savings through implementing the recommendations in this study." The report also noted that "for states considering implementing or expanding managed care models, this may be the best time to move forward."

The General Assembly created the Medicaid Managed Care Task Force and commissioned an independent study after Sen. Brady and his fellow Senate Republicans demanded that the issue of managed care be part of last year's budget negotiations. The task force became a cornerstone for his support of the final budget.

[News release from Sen. Bill Brady]

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