Plan to privatize Medicaid eligibility services in Utah falls to the wayside

SALT LAKE CITY — A state senator has backed off an effort to outsource Medicaid eligibility services after being assured the Utah Department of Workforces would reduce costs 20 percent on its own.

"DWS has assured us it will hit the target, and we'll give them time to do that," said Sen. Dan Liljenquist, R-Bountiful. "If they're able to do it, there's no reason to outsource it right now."

Liljenquist had suggested turning Medicaid applications over to a private company.

On Thursday morning, Workforce Services Executive Director Kristen Cox told the Social Services Appropriations Subcommittee the agency will trim $9.2 million from the Medicaid application program through restructuring, streamlining and cutting 142 full-time jobs over 18 months.

"We think our plan will reap immediate savings and immediate benefits for our customers and have an immediate impact to state revenue as compared to some other options that will take two years plus to ramp up," she said.

Liljenquist said he's satisfied with the department's plans and his primary goal is to save money so services in other areas, particularly to disabled Utahns, don't have to face drastic cuts.

— Dennis Romboy