Missouri to hospitals: Contract with 3 managed Medicaid insurers or face 10% payment cut

Effective July 1, Missouri hospitals not contracting with three managed Medicaid health plans will see a 10 percent reduction in Medicaid payments, according to the St. Louis Post-Dispatch.

The three insurers contracted by the state are Centere's Home State Health Plan, UnitedHealthcare and WellCare. Hospitals are worried about the financial consequences of the new regulation.

Tim Wolters, the director of reimbursement for Springfield, Mo.-based Citizens Memorial Hospital, told the St. Louis Post-Dispatch, "Medicaid overall is a huge payer for us, and if we lost 10 percent that would probably be $1 million dollars off our bottom line, and our bottom line is about $1.6 million."

The Missouri Department of Social Services hoped the change would boost provider participation in Medicaid managed care plans. However, some physicians warned the move would discourage private practices from accepting Medicaid.

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