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Dayton to require health plan audits and competitive bidding for state health care contracts

Looking to save state money on health care contracts, Gov.

Looking to save state money on health care contracts, Gov. Mark Dayton said today that providers will have to submit competitive bids to get contracts for state health plans that are worth about $3 billion.

They haven’t had to do that in that past.

Dayton also signed an executive order “requiring regular audits of health plans, and demanding full public disclosure of the profits, reserves, and administrative expenses of state contracted health care providers.”

And the state will establish a website that will show all publicly available information on managed care programs.

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Dayton said his administration also will continue to push health providers to return some of their excess reserves and profits, following the lead of UCare, which gave $30 million to the state last week.

Dayton’s office said in a statement: “For far too long, uncompetitive contracts have favored managed care plans at the expense of taxpayers.”

Noted state Human Services Commissioner Lucinda Jesson:

“The health care industry has modernized, but the way the state manages health care has not kept pace. For far too long, health care plans have simply been paid based on what’s been done before. Through full, public disclosure of plan expenses and premiums, competitive bidding, and with a focus on outcomes instead of procedures, we can modernize our approach to health care. Today’s reforms are the first of many steps we will take to get a better value for the taxpayer, and better results for those who receive care.”