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Incentives and Operations of Medicaid Managed Care Plans in New York State: Implications for Procurement Design and Market Evolution.
- Source :
-
Inquiry : a journal of medical care organization, provision and financing [Inquiry] 2024 Jan-Dec; Vol. 61, pp. 469580241258653. - Publication Year :
- 2024
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Abstract
- Several states are considering competitive procurement to help shape Medicaid managed care markets. In New York state, the focus of our study, regulators propose contracts that reward quality improvement and simplify state administration by rewarding plans that operate across several of the state's 62 counties. This case analysis uses novel regulatory data from New York state, obtained via public records request, to examine incentives underlying Medicaid markets and help inform contracting design. The data report plan enrollment by county and plan spending across administrative activities for all 16 Medicaid plans in New York state for 2018. We examine the counties in which plans operate, profitability, and administrative resource allocation. We compare outcomes by tertile of plan profitability, measured as net income per member-month. Plan profitability ranged widely, with the most profitable plan realizing nearly $30 per member-month while the least profitable 5 plans realized net negative earnings. Operational differences across plan profitability emerged most clearly in administrative spending. The most profitable plans reported greater spending on salaries overall and for executive management, and taxes, while the least profitable plans spent more on operational functions including utilization management/ quality improvement, claims processing, and informational systems. We observe modest differences in county rurality and little in geographic breadth. Procurement design that rewards capacity-building in key administrative functions might impact market evolution, given that on average, highly profitable firms spent less on these activities in New York's Medicaid managed care market in 2018.<br />Competing Interests: Declaration of Conflicting InterestsThe author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Details
- Language :
- English
- ISSN :
- 1945-7243
- Volume :
- 61
- Database :
- MEDLINE
- Journal :
- Inquiry : a journal of medical care organization, provision and financing
- Publication Type :
- Academic Journal
- Accession number :
- 38910529
- Full Text :
- https://doi.org/10.1177/00469580241258653