In the past decade, most states have turned Medicaid over to private plans with hopes they could control costs and improve care. Nearly half of the 60 million people in the government program for the poor are now in the managed care plans run by insurance giants such as UnitedHealthcare and Aetna. But Connecticut is bucking the trend.
On January 1, the “insurance capital of the world” will remove its private health plans from Medicaid, the state-federal health insurance program. Instead of paying the companies a set monthly fee to cover the health costs of more than 400,000 children and parents, the state will assume financial responsibility.
The move comes after state officials say the firms, including Hartford-based Aetna, did not fulfill their promise of lower costs and better care.
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