How Medicaid Managed Care Cuts Costs
Low-cost Medicaid managed care plans mostly cut their costs by reducing how much care, and how much high-quality care, their members receive. That is the conclusion of a new study published by the National Bureau of Economic Research. According to the study, Medicaid managed care plans succeed in reducing costs less by cost-sharing, negotiating lower provider rates, employing narrow networks, and doing a better job of managing their members’ high-cost chronic medical conditions than they do by leading their members to use fewer high-value, low-cost services such as cancer and diabetes screenings and fewer high-value drugs. The researchers note that [...]