Medicaid HMO Faces Multi Million Dollar Fine

By EinsteinCMS Administrator

Published on July 23, 2007

Peach State Health Plan, one of the three companies hired last year to help cut down on the state’s Medicaid costs, now faces a state-imposed fine for unsatisfactory performance. Peach State is accused of delaying authorization of treatment as well as denying medically necessary care.

Last year, Gov. Sonny Perdue introduced several managed care companies to the state’s Medicaid program in an attempt to curb rising costs. Amanda Seals, spokesperson for the Department of Community Health, said that the Peach State fine is the first the department has ever imposed on any of these companies. The penalty comes after a department-led audit last winter.

According to Seals, Peach State is appealing the penalty. The HMO’s parent company, St. Louis-based Centene Corp., has not yet issued comment.

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