Columbus, Ohio – Ohio Governor Ted Strickland today commended Ohio Department of Job and Family Services Director Doug Lumpkin and Ohio Medicaid Director John Corlett on setting a record for cost containment in managing the state’s Medicaid program in fiscal year 2009. 

“Doug and John’s leadership has saved the state nearly $800 million in Medicaid expenditures through cost containment strategies in the midst of a severe economic recession,” Strickland said. “Fiscally responsible and common sense management like this makes our continued investments in education and job creation possible, despite limited resources.”

These cost containment strategies enabled the state to end fiscal year 2009 under Medicaid spending targets while experiencing record caseload increases for 19 months.

Two key elements of cost containment strategies are “cost avoidance,” which is the identification of a third party to pay a claim before Medicaid does, and “pay and chase,” which occurs when Medicaid has paid a claim on which it later identifies a third party.

Cost avoidance efforts made it possible for the state to direct nearly $704 million worth of billed claims to commercial insurers and Medicare, which is an increase of $83.4 million over fiscal year 2008.

Pay and chase strategies made it possible for the state to recover $92 million, an increase of $15 million over fiscal year 2008.