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UnitedHealth Group proposes Medicare and Medicaid reforms to save $3.5 trillion Posted: October 14th, 2010

By Maryalene LaPonsie

National health care corporation UnitedHealth Group has issued a report outlining how it believes state and federal governments can save $3.5 trillion in Medicaid and Medicare payments during the next 25 years. The group's Center for Health Reform & Modernization recently completed an analysis that promotes the use of coordinated care to save taxpayer dollars.

The recommendations are found in the center's report, U.S. Deficit Reduction: The Medicare and Medicaid Modernization Opportunity, and argue that the current fee-for-service system used by many Medicaid and Medicare programs is outdated and costly.

Instead, the center believes the following three reforms should be implemented:

  1. Transition traditional fee-for-service Medicaid recipients to coordinated care programs, saving $580 billion in state and federal dollars over 25 years
  2. Expand coordinated care for those dually eligible for Medicaid and Medicare, saving the government $1.62 trillion over 25 years and allowing consumers greater access to home and community based programs for chronic and long-term health needs
  3. Provide those seniors receiving traditional Medicare benefits comprehensive care management services, saving $1.9 trillion in taxpayer dollars over 25 years

UnitedHealth Group serves 75 million individuals worldwide and is the parent company of health insurance companies such as UnitedHealthcare and AmeriChoice.