How Oklahoma Medicaid's shift to managed care empowers providers and enhances patient care

As Oklahoma Medicaid transitions to a managed care model, providers and patients alike feel a palpable sense of anticipation and anxiety. This shift represents a significant opportunity to revolutionize the delivery of health care services in the state, bringing tangible benefits to providers and patients.

For providers, the transition to managed care offers a pathway to greater sustainability in an increasingly complex health care landscape. Medicaid reimbursement rates have long been a point of contention, often falling short of covering the actual cost of care. Managed care presents an opportunity to negotiate more favorable reimbursement agreements, ensuring that providers receive fair compensation for their services. Moreover, select providers assisting with Oklahoma's transition to managed care will receive a temporary increase of 19% in the base fee schedule and an additional 9-10% increase to participate in the state Health Information Exchange (HIE).

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Patients, too, stand to benefit significantly from Oklahoma Medicaid's transition to managed care. One of the most compelling advantages is the expansion of rewards and benefits offered to members. For example, some managed care plans provide online mental health coaching, credit for opioid alternatives, such as acupuncture and yoga, rewards for attending mental health appointments following hospitalization, and support for teens experiencing loneliness and social isolation. Since managed care emphasizes preventive care and early intervention, patients are better positioned to manage chronic conditions and avoid costly hospitalizations and emergency room visits. By focusing on proactive, preventive measures, managed care can improve health outcomes, enhance quality of life and reduce health care costs in the long run.

In Oklahoma, rural communities face significant challenges in accessing health care services, including provider shortages and limited resources. Managed care can address these disparities by creating financial incentives and implementing innovative solutions, such as telehealth initiatives, to bridge the gap between patients and providers. By increasing access to a broader range of services, managed care ensures that all Oklahomans, regardless of location or socioeconomic status, can receive the care they need when they need it.

Critics of Oklahoma's managed care initiative have expressed concerns about the increased administrative burden, the ongoing financial toll of the transition, and a fear of providers exiting the Medicaid network. These concerns are real, but assistance is available.

The Oklahoma Health Care Authority (OHCA) and provider relations teams at the Managed Care Organizations (MCO) have responded quickly to our concerns. Financial programs exist to minimize the economic impact on organizations, but providers must initiate the dialogue. Our experience operating in other states with managed care, such as Colorado, provides optimism through this transition. We find managed care to have fewer silos, less administrative burden and greater financial opportunities.

In conclusion, Oklahoma Medicaid's transition to managed care holds immense promise for providers and patients alike. By fostering greater stability, efficiency and collaboration within the health care system, managed care can transform health care service delivery and improve health outcomes for Medicaid beneficiaries across the state. As we embark on this journey towards a more patient-centered, value-based health care system, let us embrace the opportunities managed care presents and work together to build a healthier future for all Oklahomans.

Ron Lobato
Ron Lobato

Ron Lobato is the chief executive officer of Alliance Mental Health, an outpatient mental health agency operating in Oklahoma and Colorado.

This article originally appeared on Oklahoman: Oklahoma Medicaid switch to managed care will offer more sustainability

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