Monday, June 22, 2009
Wright County To Consider Rejecting Health Care Cost Savings Recently Approved By The State Legislature
"BUFFALO, MINN --- When the Wright County Human Services Agency meets today at 1:30 p.m., it will be the first municipal body in the state to vote on a controversial idea that would see them add an expensive new level of bureaucracy to the cost of county health care.
The meeting will see the county debate the merits of hiring Medical Transportation Management (MTM) to handle dispatching of non-emergency medical transportation for Medicaid recipients throughout the county. MTM did this work for the metro counties through a state contract for the past five years. This year, unimpressed with the reliability and the escalating cost of the service, the Minnesota Legislature voted in a bipartisan manner to remove MTM from providing these services. Rather than accept this fact, the company is now attempting an end around this ruling by going directly to the counties in an effort to retain a government funding source.
The company in question, MTM, has been removed from handling similar services in its home state of Missouri, as well as in several other states. In Missouri, the company settled out of court for several million dollars with the state over allegations of Medicaid fraud, contract problems and antitrust violations.
When it removed MTM from the equation this past session, the state utilized the resulting savings for bridging the budget gap. If the county were to, in effect, rehire MTM to manage these services, the question of how the program would be funded and how the county would be able to make such a major decision without seeking other bidders on the contract would loom. And after the Wright County hearing on Monday, other counties including Hennepin and Ramsey are scheduled to begin the debates in their counties on Tuesday.
An association of non emergency medical transportation drivers has come together to oppose the use of this extra level of bureaucracy. Until five years ago, these rides were all handled like they are outstate, by the patients calling the transportation providers directly to set up rides, and the transportation providers handling the eligibility checks and billing directly with the state. The drivers believe that this remains the most cost and time efficient method for dealing with this matter.
MORE INFO: For more information, or to set up an interview with a transportation provider, please contact Nate Dybvig at 651.488.2229. "
The meeting will see the county debate the merits of hiring Medical Transportation Management (MTM) to handle dispatching of non-emergency medical transportation for Medicaid recipients throughout the county. MTM did this work for the metro counties through a state contract for the past five years. This year, unimpressed with the reliability and the escalating cost of the service, the Minnesota Legislature voted in a bipartisan manner to remove MTM from providing these services. Rather than accept this fact, the company is now attempting an end around this ruling by going directly to the counties in an effort to retain a government funding source.
The company in question, MTM, has been removed from handling similar services in its home state of Missouri, as well as in several other states. In Missouri, the company settled out of court for several million dollars with the state over allegations of Medicaid fraud, contract problems and antitrust violations.
When it removed MTM from the equation this past session, the state utilized the resulting savings for bridging the budget gap. If the county were to, in effect, rehire MTM to manage these services, the question of how the program would be funded and how the county would be able to make such a major decision without seeking other bidders on the contract would loom. And after the Wright County hearing on Monday, other counties including Hennepin and Ramsey are scheduled to begin the debates in their counties on Tuesday.
An association of non emergency medical transportation drivers has come together to oppose the use of this extra level of bureaucracy. Until five years ago, these rides were all handled like they are outstate, by the patients calling the transportation providers directly to set up rides, and the transportation providers handling the eligibility checks and billing directly with the state. The drivers believe that this remains the most cost and time efficient method for dealing with this matter.
MORE INFO: For more information, or to set up an interview with a transportation provider, please contact Nate Dybvig at 651.488.2229. "
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1 comments:
From: Tom Emmer [mailto:rep.tom.emmer@house.mn]
Sent: Sunday, June 21, 2009 5:55 PM
To: dick.mattson@co.wright.mn.us; elmer.eichelberg@co.wright.mn.us;
jack.russek@co.wright.mn.us; patrick.sawatzke@co.wright.mn.us;
Rose.Thelen@co.wright.mn.us
Cc: sen.amy.koch@house.mn
Subject: Meeting Tomorrow
Dear Wright County Commissioners:
I understand you have a meeting tomorrow afternoon and that one of the
items on your agenda involves brokering special transportation rides in
the County through a company called MTM. I'm sorry that my schedule
will not permit me to attend. I would like to tell you about my
experience with this company during my service in the legislature. As a
result of my position on the Health and Human Services Committee in the
House of Representatives, I have worked with this particular issue (and
I've had an opportunity to get to know this company) for the past 5
years. In my opinion, the broker does NOT provide a credible or viable
option for cost savings. In fact, my experience has shown just the
opposite.
In my opinion, MTM sold the State of Minnesota a bill of goods . In
about 2004, when our State was faced with a $4 Billion dollar budget
shortfall, MTM submitted a proposal whereby the company would broker
special transportation and access transportation - then administered by
the state. The Minnesota Department of Human Services bought the
program and "booked" substantial "paper savings" that the Governor and
legislature were hungry to accept for purposes of balancing the budget.
Unfortunately, the savings were ONLY on paper. In reality, prior to MTM
there were two parties to the transaction - the customer needing the
service and the provider responsible for the transportation. After MTM,
there were three parties to the transaction. It is important to
remember, MTM does not broker rides for free. To the contrary, MTM
would not be offering to broker the rides if there was not a profit
motive.
On paper, MTM argued over the past four years (and again during the last
session) that the state had saved money by accepting the broker's
services. In fact, from my perspective, this has been a classic case of
bait and switch. On paper, MTM has saved the state money by moving
customers off of the more expensive special transportation rides onto
the less expensive access transportation rides, i.e. cabs, buses, etc.
In reality, MTM makes money on every access transportation order - not
on special transportation. The books show lower numbers for special
transportation customers which translate into savings but do not show
the added costs incurred for brokering access transportation rides. I
submit those added costs have been significant and I haven't even
addressed the customer service problems the state has experienced, i.e.
wheelchairs in buses and taxis.
During the last session, I believe some of my colleagues in the
legislature finally started to understand what I believe to be a scam.
A formal audit of the program was ordered and the MTM funding was cut by
Senator Berglin's committee in the Senate. Imagine my surprise when I
learned (in light of everything that has happened over the past 5 years)
that MTM is now making a similar proposal to the County I represent.
I have no doubt you will all do your own investigation into this matter
and that you will make an educated decision that is in the best interest
of the citizens of Wright County. I just wanted to briefly alert you
to my experience with this company and program at the state level over
the past 5 years.
If you want to discuss further before your meeting (or after) tomorrow,
please feel free to e-mail me or call my cell at 763-670-5562.
Thanks.
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