In Brief: UnitedHealthcare Drops Out of BadgerCare Program

UnitedHealthcare has opted to end its Medicaid managed care contract with BadgerCare, citing continued cuts in reimbursement by Wisconsin regulators.

UnitedHealth cares for 174,000 Medicaid lives in Wisconsin and was paid $284 million for its service in the last fiscal year, which ended on June 30. Its contract terminates on Oct. 31.

UnitedHealthcare was among four managed care plans to win BadgerCare contracts in 2010. However, the Wisconsin Department of Health Services began cutting its reimbursement rates as much as 7% in 1011. Its latest cut, just over 1%, was announced in May and was retroactive to Jan. 1. 

Meanwhile, state officials are eyeing another $372 million in cuts during the current fiscal year, which ends in June 2013.

Another BadgerCare payer, Children’s Community Health Plan, told the Milwaukee Journal-Sentinel the reimbursement reductions had put it in the red. Although it may consider trying to pick up the UnitedHealthcare lives, officials with the plan said it could be fiscally unwise to do so.