July 1995 Bulletin

Enrollment soars in Medicaid managed care

Enrollment in Medicaid managed care programs jumped 57 percent to 7.6 million recipients from June 1993 to June 1994, according to a report for the National Institute for Health Care Management. Although Medicaid managed care now includes almost one-quarter of all recipients, 93 percent of Medicaid expenditures are still paid on a fee-for-service basis, not on a capitation basis according to the study conducted by Lewin-VHI, Inc.

The Prospective Payment Assessment Commission reported that as of March 1995, 3.2 million Medicare beneficiaries who have Part B coverage were in a managed care plan. That is 8.7 percent of all beneficiaries.

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