Medicaid Capitation Expansion’s Potential Cost Savings

April 2006 Medicaid Capitation Expansion's Potential Cost Savings Taken collectively, there is clearly a great deal of room for expansion of the capitated MCO model. Nationally, Lewin estimates that $67 billion of Medicaid fee-for-service spending (29% of total FY2003 expenditures) is amenable to being favorably impacted by expansion of the capitated model. We further estimated the savings that full adoption of the capitated model on these funds would create across a ten year period. At the state level, the savings estimates vary based on the level of TANF and SSI fee-for-service spending that is deemed . . .