Low-Spending Medicaid Managed Care Plans Reduce Utilization Of A Wide Range of Health Care Services
Enrollees in low-spending Medicaid managed care organization (MCO) plans used fewer services, including fewer low-cost, high-value services, and fewer high-value drugs. Enrollees auto-assigned to the lowest-spending plan had 30% lower health care spending than if they were enrolled in the highest-spending plan in the market.
Spending varied considerably across Medicaid MCOs despite no difference in cost-sharing. However, there was suggestive evidence that enrollees in low-spending plans were more likely to experience avoidable hospitalizations. They also had lower use of screening and …
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