As an elected leader in this state, it makes me very happy when I can vote on a bill that not only improves the lives of my fellow West Virginians, but also saves my beloved state money. Last session, Senate Bill 476 did just that.
Senate Bill 476 passed the West Virginia House of Delegates with overwhelming support. It passed the state Senate unanimously. The reason for this vast support was because the bill righted a wrong in the state’s Medicaid Managed Care program, saving West Virginia money while at the same time improving healthcare outcomes for people receiving Medicaid.
Previous to the passage of SB 476, the state capped the number of insurance providers who could participate in the Medicaid Managed Care program at three. This lack of competition resulted in rising costs for the state and health outcomes that were far below what they should have been.
The state spends about $5.3 billion a year on Medicaid. So, prior to the passage of SB 476, we were spending billions of dollars for subpar Medicaid coverage. Studies showed that recipients in West Virginia were less healthy than those living in other states that were also on Medicaid.
Why is it that West Virginia pays so much money for Medicaid but has less of a return on investment. The lack of competition in the system is likely the culprit. That is why leaders in the state stepped up to change the system.
Senate Bill 476 opened the Medicaid Managed Care Program to additional competition. Since the passage of the legislation, any company that can provide Medicaid coverage in other states can do so in West Virginia as well.
Allowing the free market to penetrate the Medicaid Managed Care Program in the state will drive costs down for West Virginia. It will also improve health outcomes for those receiving Medicaid. That is because they will now have more of a choice in what plan they obtain. That means they will have more options when it comes to finding a doctor or a health care facility that is right for them.
Medicaid is a huge program in West Virginia. About 37 percent of the state’s entire population are on Medicaid. That means about 665,000 people in the state receive Medicaid. Medicaid covers about half of the children in this state and provides funding for about 75 percent of the long-term care in West Virginia.
We need to keep a close eye on the health outcomes for this massive segment of our population to ensure that we are getting the most for our money. As a fiscal conservative, I expect to see positive outcomes for the billions of dollars we are spending on this program.
West Virginia is not a rich state. And although we have seen record breaking revenue collections during the fiscal year that ended in June, we still have to be frugal when it comes to spending. If you overspend, surpluses disappear.
That is why Senate Bill 476 and others like it are so important. When we save the state money, we can move those dollars into other sectors where it is needed.
It is a proven fact that free-market forces drive down costs. Competition is generally good for consumers. We are seeing that with this legislation and we will continue to reap the savings. I would like to thank all of the legislators who supported this important bill.
Bio: Eric Brooks is a West Virginia Delegate who represents Raleigh County.
