Profitability of Medicaid Managed Care Decreases in 2018

ANCOR is sharing this analysis by HMA Weekly Round Up because managed care is increasingly become involved in Medicaid-funded disability supports. Readers interested in learning more about ANCOR’s work on this subject might be interested in our most recent white paper on alternative payment models.

As shared by HMA:

“An analysis by HMA Information Services, a division of Health Management Associates, shows that Medicaid managed care plans in 34 states and Washington, DC, posted a net underwriting margin of 0.5 percent in 2018, down 10 basis points from 0.6 percent in 2017. For-profit plans posted higher underwriting margins than not-for-profit plans.

Overall, margins have fallen consistently since hitting a four-year high of 2.4 percent in 2015. The data include financial information for about 210 Medicaid managed care plans, with total membership of 37 million in 2018 and revenues of about $188 billion. Net underwriting profit in 2018 was about $911 million, compared to more than $990 million in 2017.”