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The capitated model, through which state Medicaid agencies contract with managed care organizations (MCOs), has yielded large-scale Medicaid savings to date. For persons and services included in Medicaid capitation programs, our report estimates that the MCO model delivered nationwide Medicaid savings of $2.4 billion during 2011. Due to many states’ expansions in their use of the Medicaid MCO model since 2011, as well as increases in the number of persons covered by Medicaid (mostly attributable to the ACA’s coverage expansion in 28 states), we estimate that the MCO model will deliver savings of $6.4 billion to the Medicaid program during 2016

The Menges Group. Projected Savings of Medicaid Capitated Care: National and State-by-State. October 2015.

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