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Moving Medicaid to managed care could save $63B in next decade

Managed care is poised to become the dominant payment model for Medicaid, projected to save the federal program tens of billions of dollars over the next decade, according to a new report.

By Katie Kuehner-Hebert | Updated on July 24, 2017
Managed care could soon become the dominant payment model for Medicaid. Photo: iStock

Managed care is poised to become the dominant payment model for Medicaid, projected to save the federal program tens of billions of dollars over the next decade, according to the report, “Potential Savings of Medicaid Capitated Care,” by The Menges Group on behalf of the Association for Community Affiliated Plans. 

“States contract with managed care organizations (MCOs) on a capitation basis for a variety of reasons,” the report says. “One is that capitation creates the ability to more accurately budget upcoming Medicaid costs. MCOs also allow for clear points of accountability for facilitating access to needed health care services, effectively measuring and improving quality, benchmarking with other states to see how their populations’ health compares, and attaining available cost savings.” 

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Katie Kuehner-Hebert

Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.

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