PwC report finds trend toward private Medicaid health plans continues in 2015

November 16, 2015

 A report from consulting firm PwC finds that the trend toward private Medicaid health plans continued in 2015, with an increase in enrollment by 7.8 million beneficiaries in the last year. Currently, 70% of Medicaid beneficiaries, or 51.3 million Americans, receive benefits from a private Medicaid health plan, compared to 66% in 2014, with the growth due to an expansion of Medicaid benefits for low-income and disabled people under the ACA, coupled with an ongoing shift to managed care by a number of large states, PwC finds. Since full implementation of the ACA in 2014, the number of Medicaid beneficiaries has exploded by 15.3 million people, with an additional 6.3 million Americans joining Medicaid in 2015. The report notes that states are increasingly turning to private plans to control spending and provide budget certainty. Currently, 41 states have some form of private managed Medicaid, and Medicaid Health Plans of America CEO Jeff Myers says that even if no other state expands Medicaid under the ACA, managed care will keep gaining market share because states are moving away from fee-for-service.
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