AHIP study: 75% of Medicaid enrollees covered by a managed care plan

Medicaid managed care enrollment increased by more than double between 2010 and 2018, according to a new analysis.

The report, compiled by the Menges Group and backed by America's Health Insurance Plans, found that managed care enrollment reached about 56 million in 2018, an increase of 121% from about 26 million enrollees in 2010.

Managed care plans covered 75% of Medicaid enrollees in 2018, compared to 50% in 2010, according to the report. Capitated payments to managed care plans have exceeded fee-for-service payments since fiscal year 2017.

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AHIP CEO Matt Eyles said in a statement that as states increasingly rely on managed care plans to administer their Medicaid programs, such plans have been a critical tool in the response to COVID-19.

“Medicaid and its safety net are more important than ever, as tens of millions of hardworking Americans have lost their jobs because of the COVID-19 crisis,” Eyles said. “Medicaid managed care plans are working closely with state and local leaders to ensure that Medicaid remains stable and reliable to provide the high-quality, cost-effective access to care that people need and deserve."

The report is the third in a series of analyses on managed care programs from the Menges Group and AHIP. The two previously released studies that show Medicaid managed care led to significant savings in drug costs and that such plans have made gains in improving quality.

Net costs per prescription were 27% lower in managed care than in traditional Medicaid, for example, the study found.