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May 11, 2021

Lembo announces $350 million in state health plan savings 

HBJ File Photo State comptroller Kevin P. Lembo.
By Liese Klein

The state health plan cut projected costs by $350 million since October by negotiating favorable contracts, managing care and clawing back savings due to lower utilization during the COVID-19 pandemic, Comptroller Kevin Lembo announced last week.

“By actively managing the plan on behalf of both members and taxpayers, we have shifted the health care dynamic towards high-quality care while holding down costs,” Lembo said in a statement. “We’re proving that you can bend the cost curve without pushing patients further away from the services they need to stay healthy.”

The state negotiated favorable contracts for Medicare Advantage and with CVS Health on prescription drugs, in addition to achieving savings with programs aimed at surgical avoidance, preventive care and treating chronic illnesses, Lembo said.

Lembo added that the projected savings show that the state can effectively manage health insurance and advance the case for a public option bill currently under consideration by the legislature. 

“I encourage lawmakers to meet the needs of our constituents — including over 70 percent of small business owners that support a public option — and take meaningful action to make healthcare more affordable,” Lembo said.

Business groups have contested Lembo’s numbers on support for a public option and say the state has yet to prove it can manage health insurance over the long term. Major insurers have mobilized to fight the proposed public option plan as costly and inefficient.

The health reform legislation supported by Lembo was approved by the legislature's Finance, Revenue, and Bonding Committee on April 22 and currently awaits action in the Senate.

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