California’s Medicaid Plans Rake in Huge Profits; State Vows To Turn Off Spigot

California’s Medicaid health plans have made a nifty profit partly as a result of the state increasing payments to Medicaid insurers in anticipation that expansion of the program under the ACA would lure many sicker beneficiaries. But that didn’t happen, reports Kaiser Health News. The largest Medicaid health plan in the country, Centene, made $1.1 billion in profits in California from 2014 to 2016. Jennifer Kent, California’s Medicaid director, promised that the gravy train is going to stop, saying that it’s not like “these plans just made off like bandits and we’re not going to see them again…. We are very mindful we use taxpayer money.” She vows: “We’re going to be taking a lot of money back. We’re talking billions of dollars.”

Source: Kaiser Health News