Skip navigation

News

Press Releases: 2011

Report: AmeriHealth Mercy Health Plan Among Organizations That Have Saved State Up to $5.9 Billion; Will Save $3.6 Billion More


Expansion of Programs Would Save Additional $1.1 Billion, Report Says


May 19, 2011
Harrisburg, PA

The AmeriHealth Mercy Health Plan is one of the managed care organizations that have saved Pennsylvania a total of as much as $5.9 billion in state and federal funds in a little more than a decade and are projected to save the state up to another $3.6 billion over the next five years, according to a just released report.

The report also found that a statewide expansion of HealthChoices, through which AmeriHealth Mercy and other managed care plans provide high-quality healthcare programs for Pennsylvania's 1.8 million Medicaid recipients, would save another $375 million over the next four years and up to a total of $1.1 billion through 2020.

AmeriHealth Mercy, which is part of the AmeriHealth Mercy Family of Companies, is a Medical Assistance (Medicaid) managed care health plan serving more than 108,000 Medical Assistance recipients in Adams, Berks, Carbon, Cumberland, Dauphin, Lackawanna, Lancaster, Lebanon, Lehigh, Luzerne, Monroe, Northampton, Perry, Pike and York counties.
"Health Choices and AmeriHealth Mercy continue to provide high quality health care to Pennsylvania's most vulnerable residents while also providing significant savings to the Commonwealth and its taxpayers," said Marge Angello, Executive Director of AmeriHealth Mercy Health Plan. "This report shows how we are able to contain costs for the state while also ensuring quality care."

The report, "An Evaluation of Medicaid Savings from Pennsylvania's HealthChoices Program," was prepared by the Lewin Group, a nationally recognized health care policy and research organization. It found that the HealthChoices Physical-Health Medicaid Managed Care Program "continues to provide Medicaid cost savings to the State through a broad and innovative array of cost containment strategies."

The Lewin Group report was commissioned by the Managed Care Organization members of the Pennsylvania Coalition of Medical Assistance Managed Care Organizations of which AmeriHealth Mercy is a member. It was designed to measure past and future program savings compared to the traditional Medicaid fee-for-service (FFS) delivery system and highlights the quality and cost containment advantages derived from Medicaid Managed Care. It also calculated cost savings that could be obtained by replacing the Department of Public Welfare's ACCESS Plus program and expanding HealthChoices statewide.

The Lewin Group report estimated that, compared to the FFS program that HealthChoices replaced, the Managed Care program is estimated to have yielded savings of $5.0 to $5.9 billion ($2.9 billion to $3.3 billion in State funds) over the past 11 years (CY2000 – CY2010).

It also projected that HealthChoices would save $2.9 billion to $3.6 billion in State funds over the next five years (CY2011 – CY2015) in the existing HealthChoices counties and between $5.4 billion and $6.6 billion for the ensuing five-year period (CY2016 – CY2020).

The Lewin Group report also estimated possible savings that would result by expanding HealthChoices statewide to the 42 counties where the ACCESS Plus program currently operates. Compared to the enhanced Primary Care Case Management model, ACCESS Plus, HealthChoices is estimated to have resulted in a total savings of $1.1 to $1.4 billion in State funds over the past five years (CY2006 – CY2010).

View the entire Lewin Group Report at: www.PAMCO.org.

About AmeriHealth Mercy Health Plan

AmeriHealth Mercy Health Plan, a member of the AmeriHealth Mercy Family of Companies, is a Medical Assistance (Medicaid) managed care health plan serving more than 107,000 Medical Assistance recipients in 15 counties of central and northeastern Pennsylvania. Headquartered in Harrisburg, Pennsylvania, AmeriHealth Mercy Health Plan is a mission-driven company dedicated to helping members get care, stay well, and build healthy communities. For more information, go to www.amerihealthmercyhp.com

For more information, contact AmeriHealth Mercy at 215-937-8648.

NCQA Excellent Accreditation NCQA Multicultural Health Care Distinction