Managed Care Saved Medicaid an Estimated $7.1 Billion in 2016
The Association for Community Affiliated Plans (ACAP) today issued a report authored by The Menges Group which quantifies the current and potential savings to Medicaid programs around the country realized by adoption of the managed care model. Those savings – based on reasonable changes to the Medicaid – are only a fraction of the drastic cuts anticipated in plans to repeal or replace the Affordable Care Act. The report estimates that in 2016, Medicaid managed care results in nationwide savings of $7.1 billion, and projects savings from existing managed care programs to total $94.4 billion over the next ten years. The report also estimates that total savings of $63 billion – including $35 billion in federal savings – could be realized over the next ten years if all Medicaid fee-for-service (FFS) spending were to be moved to a capitated managed-care model. All savings estimates are relative to the FFS coverage setting. ... |