Health-care bill likely to increase Medicaid outsourcing; some doubt treatment quality

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The Washington Post, July 7, 2010

The day after the House passed the landmark health-care bill in March, St. Louis-based insurer Centene saw its stock jump 11 percent. That was perhaps the first signal that the massive changes ahead would be a boon to one subset of the health-care industry: companies that manage Medicaid for the states. Now, businesses are rushing to get a foothold in states that outsource Medicaid, knowing the law could add 16 million people to the federal-state program for the poor and the disabled. In Texas, where Medicaid is expected to grow by 1.8 million people, Centene is scrambling to win additional contracts, having laid the groundwork by contributing $250,000 to state lawmakers' campaigns since 2008.

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