Colorado Medicaid Reform Shows Savings
Colorado began using a “medical homes” model within the last year – providing case management and care coordination for a selected subgroup of 128,000 Medicaid enrollees. The reform was begun without any additional funding because officials were convinced that generated savings would immediately cover the extra costs of the medical homes. Regional contractors receive $12 per patient per month to oversee the medical homes in seven Colorado regions. They pass on a per patient per month fee to primary care physicians to provide care coordination, case management, and prevention services.
The Denver Post reports that preliminary data show savings, including:
- A 14 percent drop in inpatient hospital stays for enrolled children;
- A 9 percent drop in hospital stays for adults with disabilities;
- A 5 percent drop in ER visits among enrolled adults;
- One ER visit for one enrollee who had 32 visits the year before enrollment in a medical home.
A full analysis will be presented to the Colorado legislature later this fall. The paper reports that state officials will continue to expand the medical home model if analysis continues to show savings. The current covered population is less than one-fifth of Colorado’s Medicaid population of 656,000.
- CSG blog post, N.C. Saves Nearly $1 Billion in Medicaid with Medical Homes, Jan. 3, 2012
- CSG Capitol Research, State Initiatives in Patient-Centered Medical Homes, Nov. 2010
- CSG Policy Resolution, State Initiatives in Patient-Centered Medical Homes. Nov. 2007