Contractor Finds $23M In Savings For Iowa Medicaid

IOWA CITY, Iowa (AP) — A contractor hired by the Iowa Medicaid program has helped save taxpayers more than $23 million in the first year of an initiative to recover and avoid improper costs.

Iowa Medicaid officials said Thursday the savings identified by OptumInsight of Eden Prairie, Minn. already exceed its three-year, $14 million contract to lead the program integrity initiative and the $20 million goal set for the first year.

About two-thirds of the savings come from analyzing paid claims and recovering improper payments. The contractor has employees at several major Iowa hospitals working to identify overpayments and duplicate payments for which Medicaid should be reimbursed.

Its reviews have also helped identify cases where providers claimed reimbursement for more expensive services than what were actually provided, or for services that were not medically necessary.

  • dan

    So where are all the Libs that claim Private industry is not needed when Govt programs do such a great job! 23 Million in waste in just 1 state!

    • dan

      So Truth tell me, are you still so brainwashed to think the Govt has or every will run a business that doesnt sink like the Titanic? Keep drinking the Obama juice dude! I think I read that the USPS only lost $5 Billion last year. Now thats from a company that sets its own postal rates and has no competition for daily mail service.

  • Billy

    With Mn being such a Welfare state I wonder how much waste is going on here??

    • Joann

      Billions! I know of 2 women that have had gastric bypass surgery and are on assistance, now one is waiting for a tummy tuck, the other wanted to lose weight to be a skinny drunk, what the hell, and our tax payers paid for it in both cases. This woman was capable of losing the weight the old fashioned way but is too lazy to move, is a chronic life long alcoholic and she was approved for the surgery… another woman needed a a 6$ part for her apnea machine and because the clinic couldn’t find the Rx she had to get the machine, they wouldn’t fix it with out another sleep study and more clinic visits at over $6,000 and she had to have a Rx to get the machine in the first place! This company could do the same for Minnesota, hell I could do it…

      • minnesota nice

        That is funny Joann. I know two women on welfare who had the same surgery. One is also a skinny drunk and we also pay for her public defender when she gets a DUI.

    • Randy

      There isn’t any waste going on in MN. They simply do not have enough government oversight in Iowa. If the GOP is Teabaggers, what are the dems? Teabaggees? I find the most ironic part is that they need to spend 14 million dollars to save 24 million dollars.

      • dan

        Thats 23 Million dollars a year for 3 years for a grand total of 69 Million dollars. Yes, its worth 14 Million since our Govt is too busy spending money instead of watching the bottom line.

        I suppose you will create the argument that $14 milliuon is too much for a private company to make.

        Guess what that’s $14 Million more we get to collect tax on, better than wasting $23 Million Tax Dollars per year

      • Billy

        There you go, more Govt always solves the problem!

  • Mel

    Basically, medicaid isn’t honoring medical claims and services. I imagine a whole bunch of people got a letter in the mail that said, “claim denied.” that’s not infrastructure reform. Sounds a little scary to me.

    • dan

      According to the article they are cracking down on “Overpayment and duplicate payments” How is this not honoring claims and services?

  • Ven

    This needs to happen across the US – we won’t need some crazy deal to balance the budget or worry about ‘Obamacare’ – the ‘system’ is broke, not the concepts.

  • Liz

    Ok, this is where people need to start doing a little research. We hear about waste a lot and it is really easy to point fingers at welfare hoarders (which do exist, however there are people on assitance who actually need it, and those who aren’t but actually need it yet can’t get assitance due to some bit of red tape) and it’s easy to point fingers at whatever poltiical party you don’t like. I personally think it’s all the Libertarians fault.

    However, maybe instead of finger pointing, we look at the issue of wasteful spending and have our representatives look at wasteful spending. The majority of it is due to poor processes that can’t really be fixed because systems and software and the amount of people, etc has gotten out of control. You see this with a lot of corporations who are still using IE 6 and outdated programs because they can’t upgrade due to their size. Plus, fixing these processes takes a lot of time. The phrase “dupliate payments” and “overpayments” should be a big hint to most people. That’s a process issue, not hand out issues.

    So stop with negativity about people who take advantage of the system and/or the parties. They’re not the problem. The system is the problem. Maybe that’s what we should be telling our representatives to focus on. Yes it’s going to take A LOT of time, but it’s worth it. If reps don’t want to, well, then vote someone else in.

  • J D IN ALA

    Liz hit the nail on the head. Most government employees have better computers and programs at home than they have to use at work!!!!

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