Liston Introduces Medicaid Savings Act to Reduce Costs and Increase Efficiency Within Ohio's Medicaid System

Bill Would Reduce Administrative Costs, Increasing Access to Care and Saving Ohio Billions of Dollars

By Beth Liston News - Ohio Senate / March 19, 2026

Today, state Senator Beth Liston (D-Dublin) and state Senator Louis Blessing (R-Colerain Twp.) announced the introduction of legislation to move the Department of Medicaid from a managed care organization (MCO) model to an Administrative Services Organization (ASO) model. This shift will reduce administrative costs tied to MCOs by creating a simplified system, resulting in increased physician participation, reduced ER and urgent care visits, and better health outcomes for Ohioans.

“All Ohioans deserve health care,” said Liston. “The Medicaid Savings Act will allow more of our tax dollars to be spent directly on care that people need, and less on middlemen and administrative waste. It is time that we make big changes to fix our system.” 

Modeled after changes made in Connecticut, it is estimated that the Medicaid Savings Act will save the state of Ohio hundreds of millions of dollars each fiscal year. This streamlined approach will allow the Department of Medicaid to reinvest the cost savings back into Medicaid services and reduce spending for Medicaid enrollees while enabling clear data collection to assess value.  At a time when health care costs are a top issue for Ohio residents, it is time to take a bold step toward reducing costs and improving the quality of care for Ohioans.  

The bill awaits a number and committee assignment. State Rep. Karen Brownlee (D-Symmes Twp.) has also introduced an identical companion bill in the House.