Rep. Brownlee Introduces Medicaid Savings Act to Increase Efficiency, Reduce Costs, and Increase Access to Care

COLUMBUS – State Rep. Karen Brownlee (D-Symmes Twp) today introduced legislation to move the Department of Medicaid away from the current Managed Care Organization (MCO) model to an Administrative Services Organization (ASO) model. This ASO model will integrate Medicaid care management for medical, behavioral health, and nursing care-creating a single line of Medicaid administration which will allow for simplified management, significantly reduced administrative costs, and better access to health care for Ohioans. It is estimated that the Medicaid Savings Act will save the State of Ohio hundreds of millions of dollars per fiscal year.

“The Medicaid system we currently have in place is inefficient, costly, and does not put patients first,” said Rep. Brownlee. “The Medicaid Savings Act will not only save the state hundreds of millions of dollars every year, but it will ease pressure on providers and significantly increase patient access to care. The Medicaid Savings Act is a bipartisan win for Ohio.”

The Medicaid Savings Act will also increase provider participation across the state by moving most Medicaid coverage to fee-for-service, with regular evaluation of and increases in reimbursement rates, as well as streamlined documentation. This bill also maintains capitated coverage for care coordination services, which have been extremely successful in supporting positive medical and mental health outcomes by reducing barriers to treatment. 

The Medicaid Savings Act is modeled after the state of Connecticut, who successfully deprivatized their Medicaid system in 2012, for a total cost savings of nearly $1 billion annually. The singular ASO model has also allowed for clean data collection and reporting on patient outcomes, providers, and health issues facing Ohioans, which allows the state to focus efforts on areas of need. 

Senators Louis Blessing (R - Colerain Twp) and Beth Liston (D - Dublin) have also introduced an identical companion bill in the Senate. 

The Medicaid Savings Act will be assigned to a committee in the coming weeks.