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Missouri could save $152M–$258M yearly by replacing private Medicaid insurers with a simpler, direct payment system.
Missouri could save $152 million to $258 million annually by ending contracts with private insurance companies managing its Medicaid program, according to a new analysis.
Switching to an enhanced fee-for-service model, like Connecticut’s, could cut administrative costs from 13% to 4–6% without requiring major state staffing increases.
This change could improve access to care and health outcomes while avoiding cuts to benefits, enrollment, or provider payments—options that could harm vulnerable populations and strain rural healthcare.
Removing insurance middlemen may offer a sustainable solution amid federal funding pressures.
Missouri podría ahorrar $152M$258M anualmente reemplazando a las aseguradoras privadas de Medicaid con un sistema de pago directo más simple.