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Senate passes Medicaid overhaul bill

By David A. Lieb
The Associated Press
Published: Friday, April 13, 2007 12:00 AM CDT
Senators gave solid approval Wednesday to a Medicaid overhaul that would place a greater emphasis on preventative health care for 825,000 low-income Missourians and reward doctors with more money for good patient care.

The Senate's 26-7 vote sends the legislation to the House, which is expected to alter the bill.

The revamped Medicaid program - renamed “MO HealthNet” - is a priority of Republican Gov. Matt Blunt and GOP legislative leaders. The effort comes two years after they reduced or eliminated Medicaid coverage for hundreds of thousands of Missourians in a budget-cutting move.

Although expanding coverage to some, this year's bill would leave in place most of those 2005 eligibility changes. Republican leaders tout the Medicaid legislation as a reform.

“We are about to embark on an historic effort. We are laying, without question, a new foundation for health care in this state,” said Senate President Pro Tem Michael Gibbons, R-Kirkwood.

The bill received bipartisan Senate support, with six of the 13 minority party Democrats joining Republicans voting for it.


Blunt praised the Senate for passing the measure, saying in a written statement, “It is a bold and innovative new system to provide better health care for Missouri's most vulnerable citizens.”

But even some supporters wished it would have done more to expand health care coverage. Sen. Rita Heard Days, for example, noted the new HealthNet name.

“A net is something with strings and a lot of holes in it,” said Days, D-St. Louis, who voted for the bill. “I'm hoping as we move forward that we can do something to make this a closer net, so we don't have the number of people falling through the holes in the health care system as we have in the past.”

The bill would steer more Medicaid recipients to managed health care plans and match each enrollee with a “health care advocate” - a doctor, nurse or some other medical professional - to help coordinate their care.

People who agree to develop health improvement plans, keep their doctors' appointments and maintain healthy lifestyles would earn credits on an electronic debit card that they could use for extra health benefits, such as over-the-counter medicines.

Doctors and other medical providers also would be placed on an incentive system. An 18-member committee appointed by the governor would come up with the new pay guidelines, perhaps reimbursing surgeons more, for example, if their patients average quicker recoveries.

The bill also contains incentives to expand private health insurance to some of the estimated 700,000 Missourians now uninsured. Under the bill, low-income Missourians who have been without health insurance for at least a year could have a portion of their private health insurance premiums paid for by the government.

Sponsoring Sen. Charlie Shields, R-St. Joseph, described the private insurance incentives as “the most exciting part” of the bill.

Rep. Rob Schaaf, R-St. Joseph, chairman of the House committee that will handle the bill, already is planning to change the legislation. His committee has held a series of hearings, gathering concerns from patients, medical providers and disabled advocates about the current Medicaid system.

The Senate bill “is a step in the right direction,” said Schaaf, who is a doctor. But “it maybe doesn't address all of the concerns that it could.”

Some physicians have expressed concern that the pay-for-performance criteria could actually serve as a disincentive by leading doctors to avoid treating the most complicated patients, who could drive down their ratings, Schaaf said.

Also, health care providers and advocates for the elderly and disabled have expressed concerns about moving that group of people into managed health care plans, he said.



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