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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

savings achieved from 1983 to 1991 is from the SSI population.
  • Various studies demonstrated that states' Medicaid health plan cost savings are largely attributable to changing patterns in unnecessary inpatient utilization such as those in a study of preventable hospitalizations in California, which found that the rates of preventable hospitalization were 38 and 25 percent lower in health plans than in fee-for-service (FFS) programs for the Temporary Assistance for Needy Families (TANF) and SSI populations, respectively.
  • Pharmacy was also an area where Medicaid health plans yielded noteworthy savings -- a comparison of drug costs under FFS programs vs. Medicaid health plans in multiple states found that the costs per-member per-month (PMPM) were 10 to 15 percent lower for health plans than for FFS programs.
  • The studies also suggest that health plans with responsibility for certain populations or services are especially likely to generate savings in a health plan delivery system while providing and coordinating comprehensive care for beneficiaries.
  • The Lewin analysis found that Medicaid health plans were found to have improved Medicaid beneficiaries' access to services and earned high satisfaction ratings from enrollees in addition to containing costs.

  • "As stewards of public funds, quality accreditation ensures our state administrators that one of America's most financially vulnerable populations is receiving the quality care and service it needs and deserves," said J. Mario Molina, M.D., President and CEO of Molina Healthcare, Inc. "At Molina, we demonstrate this by ensuring all of our eligible health plans are quality accredited by NCQA."

    "Medicaid managed care works -- it's that simple," said Daniel J. Hilferty, President and Chief Executive Officer of the AmeriHealth Mercy Family of Companies. "Medicaid recipients are among the most sick
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    SOURCE America's Health Insurance Plans
    Copyright©2009 PR Newswire.
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