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Legislation Would Use Technology and Evidence-Based Medicine to Reduce Medicaid Costs, Improve Care

April 12, 2017

Senator Scott Martin (R-Lancaster) has introduced legislation which would use technology and evidence-based medicine to reduce Medicaid costs and improve patient care.

The bill is modeled after an Alaska program that was implemented to help improve outpatient rates, cut waste, and reduce Medicaid costs. Senator Martin said an analysis of the initiative suggests it could generate between $2 billion and $4 billion dollars in annual savings for Pennsylvania.

The legislation directs the Pennsylvania Department of Human Services to issue a Request for Proposal (RFP) that would enable patients and providers to access information to:

  • Advance treatment options
  • Prevent misdiagnoses
  • Avoid emergency room utilization and hospital admissions

The cost of Medicaid in Pennsylvania accounts for one out of every four dollars in the annual state budget.

Senator Martin’s proposal comes as federal lawmakers continue to explore Affordable Care Act repeal and replace options, including changes to state Medicaid programs. Some members of Congress and the Trump Administration have proposed shifting more Medicaid costs to states in the future.

HAP appreciates the senator’s efforts to consider innovative models which focus on improving patient care. The association is reviewing the senator’s plan, and looks forward to working with him to secure more details.

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