Growth in Medicaid managed care programs has been steady over the last several years. Across 39 states in the U.S., 72.4 percent of Medicaid beneficiaries were enrolled in managed care programs in 2015, up from 64 percent in 2007.[1] Adults newly eligible for Medicaid under the expansion of the program in the Affordable Care Act are most likely to be enrolled in managed care, while those dually-eligible for Medicare and Medicaid due to age, disability, or income status are the least likely. Managed care programs have the potential to improve the health of beneficiaries and save significant amounts of money, compared with fee-for-service, through their ability to—as the name implies—better manage a patient’s care. However, because the aged and disabled populations account for the largest share of spending in Medicaid by eligibility category, the full extent of potential savings will not be realized until this segment of the population is moved to managed care at a greater rate.

[1] This average does not include Puerto Rico which has 100 percent of its Medicaid beneficiaries enrolled in a managed care program.