I have another guest post up the The Incidental Economist today, this time on a recent NBER working paper that takes a close look at Texas’s Medicaid managed care transition—and its implications for health reform.
Risk selection in Medicaid managed care (MMC) isn’t well understood, despite a robust literature on managed care plan participation in Medicare. In states that administer Medicaid through pure managed care, there is no public plan (the analog of the Medicare FFS option) to serve as a de facto high-risk pool. Instead, Medicaid insurers may risk-select against one another by trying to shift high-cost patients to competitors.
So, is there evidence that MMC plans engage in this behavior—and if so, at what cost to patient outcomes?
Full post this way._____________________________