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Payment Policy in Medicaid Managed Care

Medicaid managed care payments vary in amount and complexity depending on the populations served, benefit packages provided, and whether the plans are at risk for the costs of services.

Section D of MACPAC’s June 2011 report primarily focuses on risk-based plans to which states typically make per member per month capitation payments. States use a variety of different approaches for setting payment rates for these risk-based plans, including risk adjustment and risk sharing methodologies. Read more about state approaches to determining managed care payment rates and methods used by states to mitigate plan risk.

From: June 2011 Report to Congress: The Evolution of Managed Care in Medicaid