Study shows Medicaid MCO programs show mixed financial results

January 24, 2016

As the number of enrollees in state Medicaid programs increase, the usage of commercial MCOs has increased. However, research finds these programs have mixed financial outcomes. A study in the Journal of Managed Care and Specialty Pharmacy highlights the pros and cons related to cost, accessibility and quality of treatment for this population. While some states experienced a reduction in costs because of the programs, some states have not recorded additional savings as a result of the programs. Certain basic managed care principles do not apply to a Medicaid population, mostly because of financial limitations, resulting in no extra savings.
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