Why the rush to privatize Medicaid?
Why is Gov. Kevin Stitt rushing to privatize $7 billion in Medicaid hospital, outpatient health and mental health services when the Oklahoma Health Care Authority provides high-quality care with only 3%-4% in administrative overhead? Stitt's plan allows private companies to charge up to 15% for their overhead and profits.
Stitt admits he's a businessman without knowledge of state government history and processes. That is probably why he hasn't heard about the state's failed experiment with privatized managed care from 1993-2004. According to OKPolicy. org, this proved statewide managed care was not feasible “… following years of ineffective provider retention, the need for higher provider reimbursements and the demand from MCOs (Managed Care Organizations) for an 18 percent rate increase.” The Legislature attempted managed care again for Medicaid's “aged, blind and disabled” populations in 2015, but gave up due to “inevitable harm to providers.”
It's a fact: There is not much profit in providing health care to Oklahoma's poorest citizens. To make a profit, MCOs would have to significantly decrease medical services available to patients with the greatest need. Stitt is not running a mortgage company anymore. He is supposed to be a public servant and should ask elected legislators and the people to participate, especially those from marginalized American Indian, Black and Latino communities that have experienced the greatest health care disparities.
Jackie Gaston, Yukon