Upon review of Governor McCrory’s Medicaid reform proposal released on February 26, CEO and Executive Vice President of the North Carolina Medical Society Robert W. Seligson, MA, MBA, released the following statement:

“The proposal offered today by the Governor adopts new and innovative ideas that have great potential to reform Medicaid in a way that can have positive impact throughout our healthcare system. We applaud the Governor’s team for its willingness to embrace new approaches to Medicaid reform and believe those changes, rather than the traditional managed care models of the past, are in the best interest of all North Carolinians. We look forward to working closely with the Governor, Department of Health and Human Services, and General Assembly to implement meaningful Medicaid reform in 2014.”

“We believe that placing incentives for cost efficiencies and improvement of patient outcomes belongs with the people who take care of those patients. We are confident that with the right flexibility in the system and the latitude necessary to serve our patients to the best of our ability, the state will soon achieve its goals of cost predictability and long-term sustainability for Medicaid. Most importantly, our state’s most vulnerable citizens will receive the care they need, when and where they need it.”

To review the newly released Medicaid reform recommendations, visit the NC DHHS website. The proposal focuses on five key recommendations covering physical and mental health and long-term services and supports:

  1. NC Medicaid services for physical health will be coordinated through accountable care organizations (ACOs) that share savings and losses with the State and are responsible for quality.
  2. ACO’s coverage of the population and financial accountability will rise progressively; DHHS will benchmark progress.
  3. Enhance the state’s Medicaid mental health, substance abuse and intellectual/developmental disability service delivery system by consolidating to 4 strong LME-MCOs, which would standardize processes and integrate care among LME-MCOs and ACOs.
  4. Streamline and strengthen case management for long-term services and supports.
  5. Shape the ultimate direction on long-term services and supports through a strategic planning process.

For more information on accountable care organizations in North Carolina, a key component of this new proposal, visit www.tac-consortium.org.


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