ACAP July, 2017
I. Executive Summary Capitation spending is poised to become the dominant mode of Medicaid expenditures going forward. As of 2016, capitation spending represented 48.9% of national Medicaid expenditures, and this percentage has been increasing rapidly. As recently as 2010, capitation represented “only” 27.3% of Medicaid spending, for example. We were asked by the Association for Community Affiliated Plans (ACAP) to estimate the
current savings of the managed care model in Medicaid, as well as the additional savings that can occur if remaining fee-for-service (FFS) expenditures were...
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