The Kentucky Senate has voted to limit to three the number of managed care organizations administering the state’s Medicaid program. Currently five MCO’s operate in Kentucky.
Leitchfield Senator Stephen Meredith retired in 2013 as CEO of Twin Lakes Regional Medical Center. He said putting in place a three MCO limit would reduce bureaucratic redundancy and lessen overhead costs, particularly for small rural hospitals. “You know people forget that in most rural counties the economic base is our school system and our local hospitals. And if you lose your local hospital, it’s going to be devastating to the economy and quite truly may never recover from it,” explained Meredith.
Franklin County Senator Julian Carrol said he would like to examine other ways to save money within the managed care-Medicaid program.
Louisville Senator Morgan McGarvey also cast a no vote. “I think the problems we have is that the MCO’s we do have don’t operate under the same standards and procedures. This bill doesn’t do that. It just limits arbitrarily the number to three,” noted McGarvey.
The bill heads to the House where Meredith expects it to fair well. He said there are many House members with small rural hospitals feeling the financial pinch.?
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