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Medicaid Digest week ending October 6, 2012

By Healthcare Finance Staff

Humana inks 16-county Medicaid managed care deal in Kentucky; South Carolina to add 65,000 children to Medicaid; and Arkansas launches new Medicaid initiative in this week's Medicaid Digest.

Humana, CareSource nail down managed care contract in Kentucky
Humana Inc. and CareSource announced today that they were selected to participate in Kentucky's comprehensive managed Medicaid program in Region 3 – serving Medicaid recipients who reside in a 16-county region including Louisville, Ky., the state's largest city. Temporary Assistance for Needy Families (TANF) and Aged, Blind and Disabled (ABD) program enrollees (including individuals dually eligible for Medicare and Medicaid) are covered under the state's managed Medicaid program.

CareSource will be working jointly with Humana as part of a strategic alliance announced in March, to administer the related Medicaid benefits using Humana's health care provider network in the state. Approximately 175,000 eligible Medicaid recipients reside in the 16-county region for which Humana was selected.

"Humana has a long history working with the Commonwealth of Kentucky, where our company is headquartered, and is honored to work with the Commonwealth to address the health needs of Medicaid recipients in the state," said Alan Wheatley, president, Medicare at Humana, in a press release.

65,000 children to be automatically enrolled in SC Medicaid
South Carolina announced this week that is would automatically enroll more than 65,000 children to the state's Medicaid program by the end of the month according to an Associated Press report published in the Atlanta Journal-Constitution. The state Department of Health and Human Services will enroll children whose parents receive food assistance or welfare payments through the Department of Social Services, which would indicate that the children are all eligible for the program.

The state legislature recently approved $29 million to add the children as advocated by Gov. Nikki Haley in her executive budget proposal. By the end of the month nearly 589,000 South Carolina children ages 18 and under will likely be covered through Medicaid.

In 2010, South Carolina had 13 percent of its children uninsured, according to the Kaiser Family Foundation, the highest rate of childhood uninsurance in the nation.

Arkansas launches new Medicaid program
Arkansas has launched the Health Care Payment Improvement Initiative, a new Medicaid program that is designed to move the state away from fee-for-service payments, while also moving the system to one that is managed more by private insurers. The initiative is a partnership with the state's two largest insurers, Arkansas Blue Cross Blue Shield and QualChoice. Unlike other state efforts that have sought to save money by moving Medicaid recipients into managed care settings, however, the Arkansas program aims to reduce costs by adding new incentives and accountability for the states healthcare providers.

If all goes according to plan, the program should save the state $4.4 million in its next budget and as much as $9.3 million in fiscal year 2014. In all, 26 percent of Arkansas' residents are enrolled in the state's Medicaid program.

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