Fixed offer or competitive bid? Choosing the right Medicaid managed care contracting methodology for your state’s needs

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By Reiko Osaki, Tom Arnold, Jeremy D. Palmer, Robert M. Damler | 05 March 2015
Medicaid revenue to risk-based managed care plans has increased significantly in recent years, and there’s now mounting pressure on state Medicaid agencies to deliver quality care and contain costs. Agencies must consider the long-term stability of their Medicaid programs through changes in population, cost trends, and care practices. How Medicaid contracts are awarded to managed care plans can have a major impact on how well they support strategic outcomes and can have unintended consequences if agencies don’t carefully consider their specific markets and regulatory realities.