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South Carolina’s DHHS Finds Medicaid Pilot Program To Reduce Drug Abuse Saves Money

The South Carolina Department of Health and Human Services (DHHS) found that a Medicaid pilot program targeting beneficiaries who demonstrated drug-seeking behavior patterns has saved the state $320,000 this year. Under the pilot, the 48 participating Medicaid beneficiaries may only fill prescriptions at one pharmacy in the state; however, the program does not limit the number of prescriptions beneficiaries may receive, nor the doctors they may visit. DHHS plans to expand the program to another 200 beneficiaries with similar drug use patterns.

Update: Minnesota To Shift Poor Residents to New Insurance Plan After Eliminating GMAC

On November 10, Governor Tim Pawlenty’s (R) administration announced that it will transfer beneficiaries from the state’s General Assistance Medical Care (GMAC) to MinnesotaCare when GMAC is eliminated on March 1, 2010. GMAC provides fee-free health coverage to adults earning less than $7,800 annually, but Governor Pawlenty eliminated the program due to budget restrictions. Under MinnesotaCare, the state’s subsidized insurance program for the working poor, counties will pay former GMAC beneficiaries’ premiums through the end of their eligibility period, after which they must reapply for MinnesotaCare and assume responsibility for their own premiums. Eligibility periods of former GMAC beneficiaries will last no more than 6 months; MinnesotaCare premiums average $5 a month.

New York’s Chautauqua County Finds Medicaid Veterans Demonstration Project Successful

Chautauqua County Executive Gregory J. Edwards announced that the county’s Veterans' Service Agency's Medicaid Demonstration Project saved $1.4 million in Medicaid expenses between February 2007 and October 1, 2009. The demonstration projected isolated Medicaid-eligible veterans, who also were eligible for Veterans Administration (VA) benefits, and assisted them in applying for and receiving VA benefits prior to enrolling in Medicaid, shifting some of their costs from Medicaid to the VA. Although the county stopped tracking specific savings in October, the program will continue to operate.

Interim Michigan OFIR Ruling Limits BCBS’ MediGap Rate Increase

On November 6, an administrative law judge for the Michigan Office of Financial Insurance Regulation (OFIR) issued an interim decision blocking Blue Cross Blue Shield (BCBS) of Michigan’s requested 31-percent rate increase for supplemental Medicare insurance programs, known as MediGap policies. Under the decision, OFIR ruled that BCBS may raise its MediGap rates by 3.8 percent beginning February 1, 2010; however, Michigan Insurance Commissioner Ken Ross will make the final decision on the case in mid-December and BCBS may appeal the interim ruling.

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