Ohio Lawmakers Propose Bills to Eliminate Medicaid Middlemen, Potentially Saving Millions
A bipartisan group of Ohio state lawmakers is proposing two bills aimed at reducing Medicaid costs by eliminating managed care organizations (MCOs) that currently act as intermediaries in the system. Senate Bill 386, introduced by Sen. Bill Blessing, and its companion House Bill 780, sponsored by Rep. Karen Brownlee, seek to transition Ohio's Medicaid system to an Administrative Services Organization (ASO) model. This approach is inspired by Connecticut's system, which reportedly saved $4 billion over 13 years. The proposed legislation aims to redirect savings from administrative overhead back into the Medicaid program, potentially saving Ohio between $450 and $850 million annually. The bills are designed to streamline healthcare delivery to the three million Ohioans on Medicaid, improve patient care, and increase doctor participation in the program.