Citing “grave concerns” that they could be giving hospitals more money than is legal under the state’s Medicaid managed care program, Secretary of Health Care Administration Liz Dudek on Friday sent letters demanding information from health insurance companies.
A copy of the letter asks for proof by Aug. 1 that the contracts between hospitals and insurance companies are less than 120 percent of the Medicaid fees set by the state.
“However, the Agency has grave concerns that hospital contractual arrangements may have ballooned to unreasonable proportions and higher than what is allowed by state law,” Dudek’s letter says. “During the rate setting process earlier this year; several plans reported that the average hospital contracting rates in some regions exceed 120% of the posted Medicaid rate accutane capsules.”
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