This is an archived article that was published on sltrib.com in 2011, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
A major overhaul of Utah's Medicaid system that could save $770 million over the next decade appears headed for easy passage in the Senate.
The costs of Medicaid to the state have doubled, from 9 percent of the general fund in 1998 to 18 percent last year, said Sen. Dan Liljenquist, R-Bountiful. Under current projections, that could grow to 46 percent by 2020 under the federal health reform.
"We've had to put on the back burner other priorities for a system we know is fundamentally flawed in a number of ways," said Liljenquist. "Everything else we do in state government will be squeezed out by Medicaid growth over the next decade."
The Senate gave unanimous preliminary approval to SB180 on Tuesday. It will likely get final passage in the Senate and head to the House later this week.
The bill steers Medicaid recipients into a managed care system, rather than simply paying doctors or hospitals for services provided.
Paying doctors and hospitals directly is a "free pass to the health care system," Liljenquist said, and encourages providers to do more tests and conduct more procedures than necessary.
"That expense is overwhelming us," he said. "Moving forward as a policy statement this bill says we expect to deliver this care differently. And it will probably be a little less convenient, but we expect to provide equivalent care or better care."
A key component of Liljenquist's proposal is that the state would apply for waivers from the U.S. Department of Health to implement the proposal.
His bill would also set a target of limiting Medicaid growth at 8 percent annually. If the costs of Medicaid increase more slowly, the difference would go into a Medicaid Rainy Day Fund, which could be tapped in those years when growth exceeds 8 percent.