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Medicaid Health Plans Provide Cost Savings to States and High Quality and Value to Beneficiaries, New Analysis Shows
Date:5/20/2009

Lewin Group Report Finds that Health Plans Contain Costs and Provide Beneficiaries with Improved Access to Health Services

WASHINGTON, May 20 /PRNewswire-USNewswire/ -- Medicaid health plans are producing cost savings for states, increasing access to services for individuals covered by Medicaid, improving quality of care, and earning high satisfaction ratings from enrollees, according to a Lewin Group report released today by America's Health Insurance Plans (AHIP). Twenty-four existing studies were analyzed by the Lewin Group to determine the savings achieved when states have implemented private Medicaid health plans.

"This study provides validation that Medicaid health plans are improving quality and access while also containing costs," said Karen Ignagni, President and CEO of AHIP. "During these difficult economic times, Medicaid health plans provide states with tools that work and on which they can depend."

Since the early 1990s, state Medicaid programs have turned increasingly to private health plans because of their potential to provide high-quality, cost-effective care. According to Lewin, health plans offer an opportunity for Medicaid programs to stretch their dollars and achieve cost savings without cutting eligibility, benefits, or already-low provider payment levels as states look at ways to alleviate the economic pressure faced by their budgets.

Some highlights of the Lewin analysis of 24 studies include:

  • The studies strongly suggest that Medicaid health plans typically yields cost savings -- savings across the studies range from half of 1 percent to 20 percent.
  • The studies provide some evidence that Medicaid health plan savings are significant for the Supplemental Security Income (SSI) and SSI-related population while improving quality and value for beneficiaries. For example, Arizona saw that 60 percent of the $102.8 million
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SOURCE America's Health Insurance Plans
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