Raven asked a good question in comments:
I don’t understand that privatized Medicaid stuff — what value do the care management firms add? But they do take a cut…
This whole idea that a business bureaucracy is somehow more cost-effective than a government bureaucracy strikes me as a load of bullocks. What’s the business model — underpaying the office staff?
Mayhew Insurance has a Medicaid managed care organization (MCO) contract. I have spent quite a bit of time in the past two years working on MCO projects, so take that as you will.
What is the value proposition for a state to go the MCO route?
I see several.
- Cost predictability
- The ‘Bob’ or the external evil bastards
- Preventative care improvements
The Medicaid managed care value propositionPost + Comments (20)