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Privatization of Medicaid – FL trial balloon

Gov. Jeb Bush (R) of FL announced a proposal to enroll FL’s 2.1 million Medicaid recipients in private health plans, a sweeping change from the present program wherein the government acts as the sole administrator.
The program is designed to address FL’s rapidly growing Medicaid cost, which at $14 billion accounts for a quarter of the state budget. At present growth rates, the program will double in size, and consumption of the state’s budget, within eleven years.
Bush’s proposal, Mike Leavitt’s nomination to Sec HHS, and other recent pronouncements from the administration noted here and elsewhere are adding clarity to the picture of governmental health programs of the future. Here’s the essence –
–government as funder, not administrator
–funds based on defined contribution not defined benefit
–beginning to push responsibility for lifestyle-related diseases onto insureds
Not exactly Hillary II, but perhaps even more far-reaching.
Thanks to Andrea Lewis of Choice Medical Management in FL for pointing me to this…

One thought on “Privatization of Medicaid – FL trial balloon”

  1. “It does blow the mind that people will actually print PRI’s stuff in major newspapers, and take it seriously. But that’s the power of money in America. One of the most heard-from Canadians in discussions about their health system down here is Sally Pipes, the President of PRI. The vast majority of Canadians would be fascinated to know that Americans who listen to Sally think that Canadians are dying in the streets and that all Canadians want their system abolished and converted to American-style medical booty capitalism. Funny that both political parties in Canada’s recent election fell all over each other promising to spend more money and improve the current system.”

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Joe Paduda is the principal of Health Strategy Associates



A national consulting firm specializing in managed care for workers’ compensation, group health and auto, and health care cost containment. We serve insurers, employers and health care providers.



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