Health Insurers Owed $271 Million
By Angela Hart
State officials this week said the Healthy Families program owes $271 million in services already provided by its network of 20 health care insurers and the program needs legislative help to fix the problem.
Healthy Families’ overall shortfall is projected to be $366 million for the year, a deficit caused by expiration of the managed care organization tax in December. Last week, the Senate budget subcommittee on Health and Human Services delayed a vote on the MCO tax.
“The Legislature failed to extend the MCO tax, therefore MRMIB did not have sufficient cash to pay for the Healthy Families program invoices,” said Tony Lee, deputy director for administration at the Managed Risk Medical Insurance Board, which oversees the Healthy Families program. Lee spoke Wednesday at the monthly MRMIB board meeting.