New Resources on Medicaid Managed Care

By Martha Heberlein

States may choose to adopt managed care in Medicaid for a number of reasons. For example, they may be interested in improving care management and coordination. Others may wish to gain more predictability in spending or increase accountability for access to providers and quality of care. No matter what the reason (or combination of reasons), more states seem to be eyeing managed care in Medicaid. A number of new resources are available to help them (and advocates) navigate the subject:

  • Our new favorite data source, MACPAC, released its second report to Congress in June. The report, which examines the evolution of managed care in Medicaid, finds that approximately 49 million enrollees (71%) are in some form of managed care arrangement (although most Medicaid enrollees still receive at least some services through fee for service). 60% of non-disabled children are enrolled in managed care in Medicaid and 75% of kids in CHIP (including those in CHIP-funded Medicaid expansions) are enrolled managed care. In addition to providing background information on managed care in Medicaid (for example payment policies), its MACStats section presents state-level data highlighting enrollment, service use, spending, and characteristics of individuals with disabilities.
  • The Commonwealth Fund released a report examining how Medicaid managed care health plans differ. Since 2004, publicly traded health plans have played an increasingly significant role in Medicaid managed care. This study found that publicly traded plans with primarily a Medicaid focus, paid out the lowest percentage of their revenues in medical expenses. Additionally, they reported the highest percentage in administrative expenses. Publicly traded plans also received lower scores for quality-of-care measures related to preventive care, treatment of chronic conditions, access to care, and customer service. All important issues to keep in mind when considering whom to contract with.

 

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