Potential Savings of Medicaid Capitated Care: National and State-by-State Estimates

A report by The Menges Group on behalf of the Association for Community Affiliated Plans estimates the current savings of the managed care model in Medicaid and the additional savings that can occur if remaining fee-for-service (FFS) expenditures were moved into a capitated MCO setting. The report estimates that in 2016, the MCO model delivered nationwide Medicaid savings of $7.1 billion. This represents an overall savings of 2.6% on all the funds paid via capitation.