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Medicaid transportation costs increase

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UNDATED (WSAU)   A new state contract to give Wisconsin Medicaid recipients rides to their appointments will cost taxpayers an extra $6.3-million. That’s what the Milwaukee Journal Sentinel says about a new three-year deal for M-T-M Incorporated of Missouri. State officials said last week they would pursue a contract with the firm. It would replace Logisti-Care, which walked out of its deal after just two-and-a-half months. The Journal Sentinel said the firm was losing money because the state under-estimated the numbers of rides for Milwaukee area Medicaid recipients.

The original Logisti-Care contract was for $38-million. The new deal is almost $16-million more – and of that, the federal government would pick up about $10-million dollars of the increase. County governments used to provide medical transportation for Medicaid recipients. But the state went to a private firm in mid-2011, after health officials said it would save $4-million-dollars a year.

Assembly Democrat Penny Bernard Schaber of Appleton led a group of lawmakers that have twice sought audits of the Logisti-Care contract. Schaber’s office said an audit is needed to avoid financial mistakes in the future.

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