Spending cuts are needed in the state of Pennsylvania, and Gary Alexander, secretary of the state’s Department of Public Welfare, is determined to make them by reducing funding for Medicaid, the Philadelphia Inquirer reports. But other, “more subtle” changes proposed in a January plan to reduce the number of financial management services providers that can receive state funding for consumer-directed care are concerning the non-profits that provide that care.
“Nearly 22,000 Pennsylvanians participate in the program, known as consumer-directed care. The participants are the employers, but they typically rely on intermediaries who handle certain employer tasks, such as paying taxes, buying workers compensation insurance, and cutting paychecks.
Thirty-seven entities called financial management services providers perform those services, receiving a one-time fee of $277 to enroll a client and then an ongoing fee of $85 a month.
Alexander decided that 37 is too many such providers, and in January he announced a plan to consolidate to no more than three, each responsible for a specific region. One company could win the entire state. Applications are due March 30.
…For some not-for-profit businesses that have built substantial operations based on financial management services and have been responsible for keeping thousands out of costly institutions, the consolidation is a grave threat, putting most of their revenue in play and highlighting the risks of depending on a government revenue stream.
Read the full article at Philly.com.
Written by Elizabeth Ecker