Healthy Living: Local News
Fast-rising Medicaid expenses prompt changes in Alaska
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Story Updated: Jul 20, 2011
JUNEAU -- The state of Alaska is implementing changes to its Medicaid program aimed at tempering the ever-rising costs.
Health and Social Services Commissioner William Streur said recommendations from a joint administration-legislative task force could save the state several million dollars the first year and $20 million or more in coming years. Medicaid is intended to help lower-income citizens with medical costs.
The eight recommendations agreed upon by the group include increasing generic substitutes for brand-name drugs and establishing a pilot program of medical homes that would address chronic health problems, with a goal of reducing hospitalizations and emergency room visits.
Streur said the latter change alone could net significant savings, and the state is working to implement the pilot later this year. The intent of the task force's recommendations is not to reduce the cost of the program but to "bend the curve, reduce the increase in cost," Streur said.
The program, which he said serves about 120,000 Alaskans, cost $1.2 billion during the last fiscal year; state funds accounted for about one-third of the cost. He said the program is projected to cost $1.5 billion - a combination of federal and state dollars - during the current budget year.
Entitlement programs, like Medicaid and education, are among the biggest drivers of the state's operating budget, which grew by 2.9 percent this year. The state has been looking for ways - short of eligibility changes or cuts - to try to get a better handle its share of the Medicaid costs. Creation of the task force was part of that effort. Streur said options, like cuts, remain on the table for discussion but the task force opted for other changes to try to save the state money. He said the governor has signed off on the report.
State officials are also watching to see whether Congress makes changes to the program as part of the debate over federal spending, as that could have repercussions, he said.
Health and Social Services Commissioner William Streur said recommendations from a joint administration-legislative task force could save the state several million dollars the first year and $20 million or more in coming years. Medicaid is intended to help lower-income citizens with medical costs.
The eight recommendations agreed upon by the group include increasing generic substitutes for brand-name drugs and establishing a pilot program of medical homes that would address chronic health problems, with a goal of reducing hospitalizations and emergency room visits.
Streur said the latter change alone could net significant savings, and the state is working to implement the pilot later this year. The intent of the task force's recommendations is not to reduce the cost of the program but to "bend the curve, reduce the increase in cost," Streur said.
The program, which he said serves about 120,000 Alaskans, cost $1.2 billion during the last fiscal year; state funds accounted for about one-third of the cost. He said the program is projected to cost $1.5 billion - a combination of federal and state dollars - during the current budget year.
Entitlement programs, like Medicaid and education, are among the biggest drivers of the state's operating budget, which grew by 2.9 percent this year. The state has been looking for ways - short of eligibility changes or cuts - to try to get a better handle its share of the Medicaid costs. Creation of the task force was part of that effort. Streur said options, like cuts, remain on the table for discussion but the task force opted for other changes to try to save the state money. He said the governor has signed off on the report.
State officials are also watching to see whether Congress makes changes to the program as part of the debate over federal spending, as that could have repercussions, he said.
