Medicaid Managed Care Programs Saved States $2.4 Billion In 2011

In 2011, Medicaid capitated managed care programs generated savings of $2.4 billion for state governments, compared to what would have been spent if all services and populations enrolled in managed care were instead served via fee-for-service (FFS) Medicaid. This savings estimate is based on the cost of capitation payments for approximately 31.4 million Medicaid beneficiaries enrolled in Medicaid managed care programs (55.1% of the total of 53.9 million beneficiaries in 2011)— and what their expenditures would have been if they had remained in the Medicaid fee-for-service program.

The greatest estimated savings were . . .