Minn. Recoups Millions From HMOs Over Public Care

ST. PAUL (AP/WCCO) — Minnesota will get more than $35 million from four health plans that voluntarily agreed to cap profits from care provided to people in public programs. The federal government is in line for a similar rebate.

The $73 million in all being turned back to the government stems from a negotiated agreement by Gov. Mark Dayton’s administration and four large managed care companies, including HealthPartners and Medica. They agreed to limit profits on certain programs to 1 percent.

At a news conference today, the Governor praised his Human Services Commissioner Lucinda Jesson. He says her efforts at reform are paying off.

“The Competitive bidding process she instituted for the next contract is resulting in savings for this biennium of $500 million,” Dayton said.

Commissioner Lucinda Jesson says the money won’t arrive until July, and after audits are done. That could make it tougher for lawmakers to tap into the windfall as part of budget deliberations this session.

She told reporters, they are re-thinking the whole field.

“We’ve begun to re think and re-think not just the way we pay for health care, but the way it is delivered,” she said.

The managed care companies are in the final year of three-year contracts with the state.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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