Medicaid reform saves $10.5 million in first year


KIMT News 3 – One aspect of Minnesota’s health care overhaul seems to be paying off in a big way.

The state was the first in the country to implement this type of overhaul to Medicaid. They call it Integrated Health Partnerships (IHP).

“As the government, we’re contracting directly with groups of providers to provide care for a population of our enrollees. If they’re able to provide good care and save money, providers can share that savings,” said Minnesota Human Services Commissioner Lucinda Jesson.

The six health care providers in the program spent $10.5 million less than expected. Leaders say this is good news for taxpayers.

“This arrangement really is to help providers focus on more preventative care, more care coordination, keeping people out of the emergency room. That means healthier lives for these enrollees and more savings for us,” Jesson said.

The traditional payment system pays providers for the volume of care they give instead of quality of care. In this case, they receive financial incentives for reducing the cost of care for those who use Medicaid.

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