Legislation Consolidates Health Care Authority and Medicaid

Consolidation brings state's two largest health care purchasers together.

Governor Gregoire signed House Bill 1738, which starting July 1 will consolidate Medicaid and the Health Care Authority (HCA). A release from the Governor's Office said this will help make the state's health care programs more effective and efficient.

Under the legislation, Medicaid will be moved from the Department of Social and Health Services and merged into the HCA. HCA handles state employee and retiree health care benefits, as well s the Basic Health Plan.

“Consolidating the Health Care Authority and the state’s Medicaid program will cut costs for taxpayers and improve the quality of care for patients," Gregoire said.

The HCA will continue implementing cost-saving strategies identified by the governor’s Blue Ribbon Health Care Commission, including:

Using evidence-based medicine to ensure patients receive health care that works.
Expanding chronic care management to better serve the 5 percent of patients responsible for 50 percent of the state’s health care costs.
Promoting good health and preventive health care.
Making better use of health information technology to streamline communications between providers and patients.
Increasing transparency so that consumers can make better decisions about their own health care.

These strategies have already led to significant savings for taxpayers:

Per-capita inflation in the state’s Medicaid program was held to 2.6 percent, while the national average was 4.2 percent.
Prescription drug costs have been slashed by 23 percent, despite a 5.1 percent increase in caseload. This has saved taxpayers $100 million a year.
Evidence-based care techniques have saved $30 million a year.