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House approves bill directing Medicaid managed-care implementation by 1996
Summary
The House passed the second-substitute to House Bill 126 to direct the Department of Health to shift Medicaid patients into a managed-care system by 1996, exempting certain specialized services and existing mental-health pilots; supporters cited rising Medicaid costs and high ER use among Medicaid recipients.
The Utah House passed the second‑substitute to House Bill 126, which directs the Department of Health to implement a Medicaid managed‑care system by 1996.
Sponsors argued the change was necessary to address rapidly rising Medicaid costs and limited physician participation, saying Medicaid patients make up a large share — cited on the floor as roughly 30% — of emergency‑room use. The second substitute established a timeline for final implementation in 1996, exempted certain specialized services and excluded mental‑health pilot programs already operating (for example, a Salt Lake County pilot), and removed pharmacy providers from assessment where the state currently receives rebates.
Floor debate was brief and supportive; the bill passed on the House floor with the sponsor noting the measure had received unanimous or near‑unanimous support in the recorded tally provided on the floor and was referred to the Senate.
What happens next: HB 126 moves to the Senate for consideration and, if enacted, would require the Department of Health to create managed‑care arrangements and rules to implement the statutory timeline.
Vote and procedure: the second substitute was adopted and, as recorded on the floor, the bill passed and was referred to the Senate.
