Medicaid managed care and the marketplace.
In 1994 and 1995, Tennessee, Hawaii, Rhode Island, and Oklahoma began massive expansions of Medicaid managed care, growing from three health plans covering a few enrollees to 27 plans covering the great majority a year later. Some firms aggressively pursued expansion, while others had very limited business objectives. Although established insurers often dominated the Medicaid markets, newly developed firms, some provider-sponsored, were also important. Despite the relatively low Medicaid capitation rates in the 1996-97 period, Medicaid plans in three states had an average 1% net profit margin.
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Urban Institute, Washington, DC 20037, USA.
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D002204:Capitation Fee / Q000639:trends; D004465:Economic Competition; D005544:Forecasting; D006254:Hawaii; D018166:Health Care Reform / Q000191:economics*; D006302:Health Services Research; D006801:Humans; D007182:Income / Q000639:trends; D008329:Managed Care Programs / Q000191:economics / Q000458:organization & administration / Q000706:statistics & numerical data*; D008389:Marketing of Health Services / Q000191:economics*; D008484:Medicaid / Q000458:organization & administration*; D009825:Oklahoma; D020400:Provider-Sponsored Organizations / Q000458:organization & administration; D012237:Rhode Island; D013714:Tennessee; D014481:United States