Financial Performance of Health Plans in Medicaid Managed Care is Strong

From Kaiser News– An increasing number of states are moving toward Medicaid managed care as a way to handle the financial burden of the Medicaid program. This study compares the financial health of 170 Medicaid managed care plans and finds that companies focused on Medicaid, rather than Medicare or a commercial plan, spent significantly less on medical care and had higher operating profit margins. The author writes that plans not specializing in Medicaid are often losing money from the venture, partly because these plans “may not have invested in the medical management programs to reduce inappropriate emergency room use and avoid costly hospitalization” (McCue, 7/26). Read the Report by clicking here