Dayton seeks Medicaid cost savings

The Dayton administration is asking the federal government to approve changes to Minnesota's Medicaid program that could save the state $151 million over five years, the Pioneer Press reports. Some of the savings would come through a proposal that asks the federal government to pay for state costs in mental health care, which the feds may not go for, one observer says.
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Gov. Mark Dayton is pitching a plan that he says would save Minnesota's Medicaid program $151 million over five years, the Pioneer Press reports.

The federal program in Minnesota is known as Medical Assistance.

The program has been under fire in recent months. It's drawn the attention of congressional lawmakers, MPR reported.

Dogged by persistent questions that the state may have overpaid its Medicaid contractors in the past, the state has hired an investigator to review how the state set payment rates for Medicaid HMOs.

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Federal officials are already looking into Minnesota's handling of its Medicaid program. Now the state will join them. The human services commissioner says an outside auditor will look into questions about whether Minnesota overpaid HMOs, which could have allowed the state to receive more than its share of federal reimbursement.