$3.4 Million in Savings by the West Virginia Department of Health and Human Resources
A new contract designed to cut down on non-emergency transportation costs for Medicaid patients is paying big dividends for the State of West Virginia, saving $1.9 million in its first year. The Bureau also estimates that it saved $1.5 million this year by securing a non-emergency medical transportation broker, bringing the total savings to the state to more than $3.4 million.
The West Virginia Department of Health and Human Resources Bureau of Medical Services received the $1.9 million rebate from Medical Transportation Management (MTM) at the end of September 2015. On Oct. 1, 2014, DHHR contracted the St. Louis-based company to coordinate non-emergency medical transport services such as doctor’s appointments, therapy visits and dialysis treatments for state residents under Medicaid. DHHR wanted to reduce abuse and waste in the system and improve quality of service.
“Using a broker such as MTM not only reduced fraud and abuse in the system, but it streamlined the process,” said Jeremiah Samples, DHHR Deputy Secretary for Public Health and Insurance.
Under the contract with MTM, the Bureau for Medical Services receives a rebate of anything over MTM’s annual pre-tax profit of 7.5 percent.
In 2013, there were more than 432,000 non-emergency transports in West Virginia for residents under Medicaid, which were managed by county DHHR offices. From Oct. 1, 2014, to Oct. 19, 2015, MTM received 413,000 calls and scheduled approximately 475,000 trips.
Samples said the contract paid off big dividends by “saving the state money and allowing DHHR workers to focus on their other job duties to help those under Medicaid.”
The funds have been deposited in the Bureau of Medical Services account and will be used to provide medical services to West Virginia residents.
MTM is responsible for full administration of the program including customer services, provider enrollment, verification of safety requirements, utilization review and monitoring for fraud and abuse.
Medicaid is a federal program administered by the state to help with medical costs for some people with limited income and resources.