Medicaid managed care procurements are among the largest state purchasing efforts, often exceeding many billions of dollars a year. States make decisions about the selection process and purchasing specifications, then manage procurements in accordance with state rules but with little federal oversight until after contracts are awarded. To understand how procurements may affect the delivery of services and achievement of policy goals, MACPAC conducted an extensive review of state practices for selecting managed care plans.
In this session, staff presented findings from this study. States use their purchasing power to encourage managed care plans to compete on their ability to support or advance program goals. However, managing a complex purchasing effort while simultaneously maintaining day-to-day program operations can be a significant challenge for state staff. Additional federal guidance and technical assistance could help improve Medicaid managed care procurement practices.
