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Does capitated managed care affect budget predictability? Evidence from Medicaid programs.

Victoria Perez¹

¹Indiana University Bloomington, Bloomington, IN, USA. vieperez@indiana.edu.

International Journal of Health Economics and Management

|October 17, 2017

Summary

This summary is machine-generated.

Managed care enrollment offers limited benefits for Medicaid budget predictability. Despite most enrollees using managed care, it concentrates on stable spending, yielding minimal gains in budget stability for states.

Keywords:

Budget predictability Fiscal planning Managed care Medicaid

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Area of Science:

Health Economics
Public Health Policy
Healthcare Management

Background:

Medicaid represents a significant portion of state budgets, making budget stability crucial.
Existing research primarily focuses on Medicaid spending levels, not spending variance.

Purpose of the Study:

To investigate if managed care enrollment reduces Medicaid spending variance.
To assess the impact of managed care on budget predictability for states.

Main Methods:

Analysis of Medicaid spending data, focusing on spending variance.
Examination of managed care enrollment patterns and their correlation with spending stability.

Main Results:

Managed care enrollment has been concentrated among Medicaid enrollees with the most stable spending patterns.
This concentration results in marginal improvements in budget predictability for states.

Conclusions:

Managed care's impact on stabilizing Medicaid spending and enhancing budget predictability is limited.
Further research may be needed to explore alternative strategies for Medicaid budget stabilization.