Privatization in Action: Iowa Medicaid Costs grow more under private management

[Bettie]

https://www.desmoinesregister.com/story/news/health/2018/09/19/iowa-medicaid-cost-increases-nearly-triple-under-privatized-managed-care-legislature-kim-reynolds/1293372002/?fbclid=IwAR3z4JcP-VWN8E74aKb-IOcsUHJydiEC9T98H9cmVkI9qhmhFQU0UM7pTAA

Excerpts:

The average cost of insuring an Iowan on Medicaid has climbed nearly three times as fast since the state hired private companies to manage the program, when compared to the previous six years, new state figures show.

Since fiscal 2017, the first full year of privatization, the per-member cost of Iowa's Medicaid program has risen an average of 4.4 percent per year, according to the non-partisan Legislative Services Agency. In the previous six years, the per-member cost rose an average of 1.5 percent per year, the agency said.

The human service department's leaders defend Iowa’s transition to privately managed Medicaid and contend the per-member cost figures can be misleading. They said some years' cost totals could be inflated because they include bills paid for services that were provided to Medicaid members in previous years.

But a leading critic of privatized Medicaid said the new numbers are clear evidence the transition is not fulfilling its promises.

[nykym]

1. It amazes me that

people think privatized medicine will lower costs.
What is the prime directive of a corporation?
TO MAKE A PROFIT!

[Bettie]

2. I know, right?

And yet, they always seem shocked when it doesn't lower costs!

[Turbineguy]

3. It's financial, but

medicine is involved.