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Excellus dropping Medicaid, Family Health Plus
Rochester, N.Y.-- Excellus Blue Cross BlueShield will no longer offer Medicaid Managed Care and Family Health Plus program, beginning next year.
About 105,000 people will be impacted by this change.
A statement from Excellus is as follows:
With great reluctance, Excellus BlueCross BlueShield has notified the State Department of Health that it will be withdrawing from the Medicaid Managed Care and Family Health Plus programs during the first quarter of 2014. The health plan is incurring losses approaching $100 million on these products in 2013 and we expect that amount to increase in 2014. Losses of this magnitude are simply unsustainable.
Our preference would be to stay in the Medicaid Managed Care and Family Health Plus programs. We have a long history of supporting safety net programs but we cannot continue to do so while incurring such large financial losses. We have had several meetings with the State throughout 2013 to see if the losses could be addressed by changes in reimbursements that the State pays us to provide coverage. We value the State as a partner but we have been informed that changes that would meaningfully reduce these losses are not forthcoming.
The decision to withdraw from Medicaid Managed Care and Family Health Plus applies only in the 25 counties served by Excellus BCBS. The decision does not apply to Child Health Plus or Medicare products in any county.
We would like to stay in the Medicaid Managed Care and Family Health Plus programs but it is not sustainable without a significant reduction in the losses we are incurring.
Medicaid is the government's health care program for families that provides free or low-cost health coverage for people with low incomes or resources.