Medicaid risk-based managed care: Analysis of administrative costs for 2014

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By Christopher T. Pettit, Ian M. McCulla, Jeremy D. Palmer | 23 June 2015

Since the inception of the Patient Protection and Affordable Care Act and subsequent Medicaid expansion efforts in several states, the number of beneficiaries and the number of managed care organizations (MCOs) operating in the Medicaid line of business have increased substantially. The primary purpose of this report is to provide reference and benchmarking information for certain key administrative expense categories used in the day-to-day analysis of Medicaid MCO financial performance. This report also explores the differences among various types of MCOs using available segmentation attributes defined from the reported financial statements.