Louisiana Senate Panel Criticizes Insurance Voucher Proposal For New Orleans' Low-Income, Uninsured Adults

Main Category: Health Insurance / Medical Insurance
Article Date: 14 Apr 2008 - 9:00 PDT

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The Louisiana Senate Health and Welfare Committee on Wednesday gave a "chilly reception" to a proposal by the Coalition of Leaders for Louisiana Healthcare that would have used funds for charity care in the New Orleans area to purchase managed care plans for low-income, uninsured adults, the New Orleans Times-Picayune reports. Committee members said that the $156 million proposal was too costly and that an attempt to overhaul the health care system should be done on a statewide basis.

Under the coalition's plan, 61,000 uninsured residents would receive insurance vouchers to enroll in managed care "medical homes." Premiums would average $194 per month and would be paid for with Medicaid dollars that currently fund most of the care in the Louisiana State University charity system, the Times-Picayune reports. LSU would retain the remaining $214 million in Medicaid funds to finance care for up to 50,000 residents who would remain uninsured.

State Sen. Joe McPherson (D) said the cost estimates are unrealistic and added that the plan also does not account for inflation.

Mark Peters, CEO of East Jefferson General Hospital and leader of the coalition, said that the legislation is not needed for the plan to be established, adding that the state could switch to the model if the federal government approves a waiver. Peters said he hopes a waiver will be approved before January 2009, adding that the plan is similar to one supported by HHS Secretary Mike Leavitt. A waiver application from the state would require the approval of health care committees in the Legislature, according to the Times-Picayune (Moller, New Orleans Times-Picayune, 4/10).

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