HUSKY B saves $4 million in switch from HMOs

As advocates predicted, it appears the shift from capitated managed care to self-insurance saved the HUSKY Part B program $4 million in lower medical costs in the first six months. (The numbers are still tentative, as there may be some outstanding claims from the first half of the year, but they are not expected to be large). January 1st of this year the state moved the entire HUSKY program out of capitated HMOs and into a self-funded model with care coordination. At this week’s PCMH committee of the Medicaid Council, DSS reported that spending in the HUSKY B program was down significantly after the switch. The switch was only effective for six months of the latest fiscal year (FY12) but even so, medical service spending was down by $4 million over the previous year. HUSKY B spending in FY 11 was $35 million. If the $4 million savings continues for the rest of 2012, savings would be 23%. Enrollment varied by only 2% between the years. HUSKY Part A savings from the switch were not available as that spending is included in the much larger Medicaid line item.