Medicaid Cleanup Yielding Lower-Than-Hoped Savings

By: AP
By: AP

CHICAGO (AP) -- Illinois officials say the state saved about $44 million in five months because of a vendor's work to scrub unentitled Illinois residents from the Medicaid rolls. Department of Healthcare and Family Services Director Julie Hamos detailed the savings Tuesday at a legislative hearing in Chicago.

The work by Reston, Va.-based Maximus resulted in the state canceling Medicaid for more than 125,000 people. Outsourcing that task will cost the state about $70 million over two years.

Hamos says 40 percent of the people kicked off Medicaid had no medical costs in the past six months, resulting in lower than projected savings.

She says Illinois officials still would like to complete the contract with Maximus and will appeal an arbitrator's ruling that would require the contract to be canceled Dec. 31.


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