Medicaid accountable care organizations (ACOs) receive substantially less attention than their Medicare counterparts, perhaps because the models are adopted on a smaller scale and often serve a smaller population. Currently there are 2.6 million Medicaid beneficiaries enrolled in Medicaid program-sponsored ACOs, approximately 28% the Medicaid population. It is important to note that this number only includes Medicaid ACOs that are part of a state-driven initiative and does not include independent ACO contracts with Medicaid health plans.
For states, the Medicaid ACO model is crucial in their efforts to lower costs and also serve as a testing ground . . .

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