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Final Report on State Strategies to Promote Value-Based Payment through Medicaid Managed Care

Many state Medicaid programs have begun requiring managed care organizations (MCOs) to increase use of value-based payment (VBP) methods. Some states require MCOs to use specific payment models while other states set VBP targets and are less prescriptive.

To understand how these strategies are working in practice, MACPAC contracted with Bailit Health to conduct structured interviews with state officials, MCOs, and other stakeholders in five states (Minnesota, New Mexico, New York, Ohio, and South Carolina). At the February 2020 MACPAC public meeting, staff presented a summary of the key themes from the study. This full contractor report provides additional information about the strategies being used by each state and details about the study’s findings.