Minn., health providers take on Medicaid costs

ST. PAUL, Minn. (AP) — Gov. Mark Dayton's administration is partnering with six Minnesota health providers in testing a new Medicaid payment model aimed at reducing cost of treatment for 100,000 Medicaid patients, with a greater emphasis on preventive care.

Dayton and Human Services Commissioner Lucinda Jesson announced the initiative Friday. The agency and the Twin Cities-based providers will shift from paying for volume of patients served to incentives for quality of care, and share in savings associated with meeting quality care targets. The partners will also share in risks associated with the venture.

The administration is forecasting the new payment system will save taxpayers about $90 million over three years. Jesson says her agency is already working to expand the model to more of the roughly 800,000 Minnesotans on Medicaid or MinnesotaCare.

Copyright 2013 The Associated Press.