Physician Patient

“Non profit” Minnesota HMOs making money managing the MN Medicaid program: Where is the oversight?

On Dave thompson’s radio show October 2, 2014 (link above), MPPA Board member Dave Feinwachs makes the case that delegating the management of Minnesota Medicaid (MA – medical assistance) program to “nonprofit” HMOs has occurred without adequate cost accounting and fiduciary responsibility provided to Minnesota taxpayers (who also pay more in federal taxes because of this). Remember, in 2012 Ucare, a Medcaid HMO, paid the State $30 million, calling this a “donation.” See

Feinwachs shows how this poorly regulated money stream from government to Minnesota HMOs also impacts the rising costs of private market and MNsure policies in Minnesota. Minnesota HMOs make a lot of money from “administering” State programs while taling on no insurance risk; they report the costs of Medicaid services to the federal government without adequate claims data. The Segal report can be referenced as well.

During the 2014 political campaign season, candidates for Governor and US Senator should be questioned about where taxpayer money is going to pay for our (ACA enlarged) Medicaid enrollment in Minnesota: Who profits, who pays, and what are rules and oversight are protecting Minnesota taxpayers?

Comments are closed.