North Carolina Medicaid Reform


The new governor of North Carolina is out reform how Medicaid is paid for in the state:

 RALEIGH, N.C. — North Carolina’s $13 billion Medicaid program needs a big dose of private competition that will come from paying a handful of statewide managed-care providers to deliver medical, mental, and dental care to the elderly and disabled for a stable cost, Gov. Pat McCrory said Wednesday.

McCrory and state Health and Human Services Secretary Aldona Wos unveiled a proposal that would largely privatize management of Medicaid while keeping ultimate responsibility in state hands.

McCrory said reshaping Medicaid was the first and most pressing long-term task his three-month-old administration was tackling.

The problem today is that the program continually runs over budget and programs that had money allocated to them have to be adjusted to accommodate the overrun.

The idea is to remove the risk from the state and give it to the private sector in exchange for the chance to earn profits in the space.

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