Medicaid Plan Increases HMO Profits | Print |  E-mail
September 2011

The Medicaid legislation passed during the 2011 session aims to expand Florida's experimental managed care plan.  One of the most controversial issues debated was the question of what standards should be used to regulate HMO profits.

The choice selected by the legislature—called “achieved savings rebate”—delivers a massive bonus to managed care plans and their frequently out-of-state executives and investors, at the expense of the most vulnerable patients and Florida taxpayers.

The option not selected—“medical loss ratio”—would have reduced HMO profits and provided more accountability that has been lacking for Medicaid managed care in Florida.

> Read the report.