- Health insurers are bullish on Medicaid expansion, Forbes reports, citing the example of Centene, which has announced a larger 2015 profit and a more optimistic outlook than that of UnitedHealth, which recently suggested it might leave the ACA exchanges after 2016.
- Along with Medicaid expansion, however, has come an increase in Medicaid improper payment ($14.4 billion in FY 2013 to $29.12 billion in FY 2015), and HHS says not many states have agreed to accept federal funding to undertake data-mining efforts to search claims.
- Meanwhile, action is taking place in states including Virginia, where Gov. Terry McAuliffe is attempting to include Medicaid expansion in the state budget; Iowa, where federal officials are requiring a two-month delay before the state can implement its Medicaid privatization program; and Montana, where the $16 million contract has been finalized between the state and Blue Cross and Blue Shield of Montana to become the first commercial insurer to administer a state Medicaid expansion program.
Centene is poised to benefit by continued Medicaid expansion because it focuses on administering government benefits to low-income Americans, Forbes notes.
Centene and Health Net, which Centene is working to acquire, are projected to earn more than $40 billion in annual revenue, which is largely due to the increase in government subsidized insurance coverage under the ACA.
In addition to benefiting by Medicaid expansion, plans like Centene are getting increased opportunities to manage health benefits for low-income populations in budget-constrained states, counties and other municipalities, Forbes reports.