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Kaiser Daily Health Policy Report Examines Developments Related to Medicaid in Three States, USA

Kaiser Daily Health Policy Report rounds up recent Medicaid developments in North Carolina, Ohio and Wisconsin. Summaries appear below. 


North Carolina: Allen Dobson, the new director of the state Division of Medical Assistance, has announced plans to create a 10-member team to investigate Medicaid providers' billing practices and reduce fraud in the state program, the Raleigh News & Observer reports. Dobson also is expected to institute a new policy of suspending Medicaid payments to providers who are under investigation but have not yet been convicted of fraud, according to the News & Observer. The addition of more than 12 Medicaid fraud investigators in the past two years already has helped increase the state's recovery of funds in fraud cases to $19 million last year, up from $2.3 million in 2000, the News & Observer reports (Bonner, Raleigh News & Observer, 7/22). 


Ohio: The Ohio Health Care Association, which represents assisted-living facilities, on Wednesday filed a lawsuit challenging a new pricing system under which the state will pay a standardized rate for the care of Medicaid beneficiaries in nursing homes beginning July 1, 2007, the Dayton Daily News reports. Under the new system, the state will pay about $12 a day per nursing home bed for capital costs, compared with up to $20 per bed under the previous formula. Peter Van Runkle, president and CEO of OHCA, said the reduced payments will adversely affect nursing homes that have debt from construction costs, renovations and other capital investments. Van Runkle also said that nursing home officials were not given adequate notice or time to comment before the formula change was approved in the state budget. Jon Allen, a spokesperson for the state Department of Job and Family Services, said a state panel debated the issue for at least one year and that Van Runkle had adequate opportunities to comment on the measure (Samavati, Dayton Daily News, 7/21). 


Wisconsin: Gov. Jim Doyle (D) is expected to veto a 1.4% spending increase in state Medicaid funds for nursing homes and could redirect the funding to public schools, the Milwaukee Journal Sentinel reports. State Sen. Scott Fitzgerald (R) said the Legislature might be able to override the veto, noting that the Medicaid funding package passed the Legislature's Joint Finance Committee unanimously. In addition, 50 Republican members of the state Assembly wrote Doyle earlier this week asking him to pass the funding increase. Sixty-six votes are needed to override a veto, according to the Journal Sentinel. Thomas Moore, executive director of the Wisconsin Health Care Association, said a veto of the 1.4% rate increase would mean "dramatic" reductions in care and staff. The state Legislature previously rejected Doyle's proposal to divert to Medicaid $180 million from a fund that is used to stabilize medical malpractice insurance premiums (Walters, Milwaukee Journal Sentinel, 7/21). 

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