MANAGED CARE September 1998. ©1998 Stezzi Communications
Why are so many HMOs getting out of the managed Medicaid business? Wall Street analysts have wondered about that for several months, and now, apparently, so is President Clinton. He ordered Health and Human Services Secretary Donna Shalala to determine the reasons why health plans are withdrawing from Medicaid managed care programs — and how further erosion can be prevented. It has been reported that many plans are not particularly fond of Medicaid's low reimbursements, benefit mandates and high administrative costs — and simply have opted not to play this once promising game.