Saving Taxpayer Money in Michigan
April 2, 2015
Categories: Thought Leadership
CNSI began working with Michigan in 2006, designing and implementing the first-ever completely Web-based Medicaid Management Information Systems (MMIS) in the U.S., called the Michigan Community Health Automated Medicaid Processing System (CHAMPS).
Six years after its successful implementation, Michigan was busy working on a plan to expand Medicaid under the Affordable Care Act, which the state branded the Healthy Michigan Plan. CNSI designed and developed changes to CHAMPS to ensure an efficient launch of Healthy Michigan, extending affordable, quality health care to all qualified Michigan citizens.
When the Program was fully launched in April of 2014, it was enormously successful. Nearly 580,000 individuals signed up for coverage — 100,000 more than the state had estimated.
Now, the state is realizing huge cost savings, in no small thanks to the smooth roll-out of the Medicaid expansion. Michigan’s Medicaid Director Steve Fitton told the House Appropriations Community Health Subcommittee recently that the expansion of the state’s Healthy Michigan Plan has saved a “serious” amount of money.
Just how much is a “serious” amount of money? To put in in perspective, the number of people covered by Medicaid has increased from 10 percent to 19 percent since the year 2000 and health care costs have skyrocketed during the same time period. According to Fitton, Medicaid spending should have increased by more than 150 percent.
Instead, spending has increased only 20 percent, representing a $200 million dollar savings for Michigan’s tax payers.
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