Uncategorized

Gov McCrory contradicted by his own NC Medicaid Director: State with private health plans running Medicaid has double NC’s administrative costs

Administrative costs to administer Medicaid programs between states are hard to compare because states have so many different ways of paying for care to be delivered to Medicaid patients. This hasn’t stopped NC Governor McCrory from justifying his decision to reject federal money for Medicaid by saying NC’s Medicaid administrative costs are much higher than in other states.

But this is contradicted by Carol Steckel, Republican Governor McCrory’s newly-appointed Medicaid director, who testified recently to a legislative committee regarding the issue of comparing NC Medicaid administrative costs to administrative costs in other states.

The NC Medicaid audit being discussed at the meeting claimed that NC’s cited 6.3% administrative costs were much higher than the 1.73% figure cited for Arizona’s Medicaid administrative costs. Steckel, when asked about this figure, said this comparison was simply not accurate. Why? Because Arizona puts all its Medicaid patients into privately-run managed care health insurance plans. North Carolina doesn’t put any Medicaid patients into privately-run managed care plans and instead runs its own statewide managed care program, Community Care. The figure for Arizona’s administrative costs does not include the administrative costs of the privately-run managed care plans.

As Steckel explained: “The administrative cost functions are in the managed care entities…if you look at that for Arizona, their administrative costs would actually be 13.74%”

So, saying that NC’s Medicaid administrative costs are higher than comparison states like Arizona is inaccurate when states NC is compared to have some or all of their Medicaid patients in private managed care plans. As Steckel ended her testimony on this issue:

We have a saying in Medicaid: If you look at one state you see one state.

 

One Comment


  1. Verla Insko

    April 1, 2013 at 10:19 am

    Thanks for getting the word out to a broader community. Gov. McCrory’s mistatement went across the state through traditional media outlets. Every NC newspaper and every local TV outlet needs to know truth.

Check Also

Senator Richard Burr: Makes up his own facts about NC Medicaid in order to criticize it

North Carolina’s Senator Burr used to be a ...

Top Stories from NCPW

  • News
  • Commentary

The percentage of teachers passing state licensure exams has fallen to 80 percent, leaving some memb [...]

Students, faculty and legal experts are all questioning last week’s legal settlement in which the UN [...]

In addition to historic cemeteries and archaeological resources, state is concerned about asbestos, [...]

WASHINGTON — The Pentagon is failing to ensure that all military families have access to safe, quali [...]

The post Silent Sham appeared first on NC Policy Watch. [...]

Despite having voted to expand the economics and personal finance curriculum in the state’s high sch [...]

It may be difficult to say how you are feeling this morning, two mornings after a Superior Court pan [...]

Well, that appears to be a wrap. The 2019 legislative session that commenced way back in January and [...]