How Efficient is Medicaid?

With millions of people slated to be herded into Medicaid under the new health reform law and many of those dropping private coverage in the process, readers may be interested in how well this program works. We previously reported on the American Medical Association’s finding that 20% of all third-party payments by commercial insurers were in error.

By contrast, how well does Medicaid do? Much worse, if a recent State of Colorado Single Audit for the fiscal year ending in June, 2009 is any guide.

Comments (9)

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  1. Tom H. says:

    This is all rather amazing. Particularly when you consider that more than half of the newly insured are going to be pushed into Medicaid.

  2. Joe S. says:

    Also, when Obama and Orszag et. al. talk about waste in the system they almost never mention Medicaid. Or that they are going to be moving people from less wasteful to more wasteful health insurance as part of their reform.

  3. Paul H. says:

    The administration also never mentions Medicaid rescissions, which are far worse than private sector rescissions.

  4. Devon Herrick says:

    Just over half of Medicaid claims (at least in Colorado) contain errors. Medicaid is already rife with graft and abuse — I wonder which party the errors favor? In New York State, for example, the state uses Medicaid as an economic development fund. The state all but encourages abusive claims, knowing the federal government will match dollar-for-dollar the amounts used to fund inefficient hospitals (that employ union workers), school health programs and clinics. Federal matching funds are almost like a 50% off sale when rewarding favored health care provider constituents.

  5. Larry C. says:

    This chart says a lot. Apparently, ObamaCare means moving 16 million people into what is probably the most error prone, poorly managed insurance plan in the country.

  6. Vicki says:

    I think this is scandalous. More peole ought to know about it.

  7. Virginia says:

    A friend of mine had a collection agency after him for months because someone incorrectly coded his insurance information during a hospital visit. Had it been caught at that time, it would have been easily fixed.

    But, they didn’t call him until a year later, after he had switched insurance plans. He finally got it cleared up, but the overall result was a tremendous time suck and a very stressful situation.

    It seems to me that if medication errors were as high as billing errors, we would be beating our heads on the desk trying to figure out a better solution. Errors, after all, can be a sign of system inefficiency.

  8. Bruce says:

    The answer to your question is: It’s not efficient at all.

  9. Thomas says:

    the NHS is run by several local hletah trusts who control the way local hletah care is delivered. all the government does is affect what share of the NHS monetary proclamation each entrust gets.air force arent bought on the NHS, if you need something done it gets done, the doctor decides not the long-suffering. i would have thought that was the way it was the planet over :s