The bill mandates the executive office of health and human services (EOHHS) to develop a comprehensive plan for the transition within two years. This entails that the MCOs currently overseeing Medicaid services will have to comply with a stricter medical loss ratio (MLR) requirement of over 90%. The transition is intended to not only reduce the financial burden on the state by minimizing overpayments to private insurers but also to enhance cost-effectiveness in delivering medical services to enrollees. Similar transitions in other states, such as Connecticut, have demonstrated improved access to care and significant savings.
Bill S0108 introduces significant amendments to Rhode Island's approach to Medicaid by transitioning from a managed care model to a state-run fee-for-service system. The bill aims to correct longstanding problems of oversight related to managed care organizations (MCOs), which have resulted in substantial financial mismanagement. With approximately one in four Rhode Islanders relying on Medicaid, this transition is positioned as a crucial measure to ensure effective management of the program and better serve the state's most vulnerable populations.
While proponents of the bill argue for its potential cost-saving measures and improved oversight, there are concerns regarding the feasibility of such a swift transition. Opponents worry about potential disruptions in care delivery as the state shifts away from MCOs, which could jeopardize service continuity for Medicaid beneficiaries. Furthermore, within the broader discussions, there have been debates about the adequacy of resources required to implement such a system properly, and skepticism surrounding the state’s capacity to manage the intricacies of a fee-for-service model effectively.