Proposals could save government $3.5 trillion

United Health Group's Center for Health Reform and Modernization is reporting approximately $3.5 trillion in Medicare and Medicaid funds could be saved in the next 25 years through coordinated-care programs, which aim to better manage patients' health care needs.

The savings would result from changes in the way the programs are administered. First, Medicaid beneficiaries would be given better access to care. Fee-for-service Medicaid beneficiaries who are not on Medicare, including those with long-term care issues, would be enrolled in coordinated-care programs to help manage their health.

Second, coordinated care for beneficiaries with chronic conditions or conditions that require expensive care would be expanded. Such patients would rely more heavily on at-home care with more complete integration of Medicare and Medicaid benefits.