Medicaid Managed Care Payment Methods and Capitation Rates in 2001

Health Affairs--January/February 2003
Vol. 22, No. 1
January/February 2003
Holahan, J. and S. Suzuki
pp. 204-18

We present results from a survey of Medicaid managed care payment methods and rates in 2001 for AFDC/TANF and poverty-related Medicaid populations, updating a similar survey of 1998 rates. Rates were adjusted for differences in age-sex groupings, maternity payments, and service carve-outs. A twofold variation in Medicaid capitation rates remains, although there was a change in the composition of states at the top and bottom. The data also show that the growth in Medicaid capitation rates between 1998 and 2001 averaged 18 percent, considerably more than the increase in Medicare+Choice rates.

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