Managed Care Organizations

The Eastern Virginia Care Transitions Partnership (EVCTP) is a largescale partnership including Bay Aging and four other Area Agencies on Aging (AAAs), four health systems, three managed care organizations (MCOs), and other health care and human service providers. This case study describes several topics including the service delivery model, information sharing and reporting, shared governance, success factors, and challenges.

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.