UnitedHealth lays out steps for Medicaid savings

* Insurer sees $366 bln in savings over next decade

* Medicaid set for big expansion under reform

NEW YORK, April 15 (Reuters) - Managed care coordination and other strategies can help states offset budget pressures for their Medicaid health programs for poor Americans, according to a report released on Thursday by insurer UnitedHealth Group Inc (UNH.N).

UnitedHealth's report comes as the newly passed health reform law sets in motion an expansion of Medicaid to an estimated 15 million more members, or roughly 30 percent. Yet Medicaid is a financial burden for many states, which administer the program with the help of federal funding.

The report by UnitedHealth, whose Americhoice division is the largest Medicaid company, describes $366 billion in estimated savings that can be achieved over the next decade.

One major area of savings could come from greater use of managed-care techniques for people with long-term care needs, including better coordination between Medicaid and Medicare, the government health program for the elderly.

Another big savings area would come from modernizing Medicaid's administrative and transactional processes, through new health information technology systems and other methods.

The 2014 expansion of the Medicaid program presents one clear growth area for UnitedHealth and other health insurers, although that growth comes with some risks. [ID:nN30179206]

In addition to UnitedHealth and other large companies such as WellPoint Inc (WLP.N), smaller insurers such as Amerigroup Corp (AGP.N) and Centene Corp (CNC.N) specialize in Medicaid. (Reporting by Lewis Krauskopf; Editing by Lisa Von Ahn)