Oliver Wyman August 7, 2025
Financial and operational pressures are expected to mount for Medicaid payers. We outline six key actions they should take to prepare for the coming changes.
Medicaid insurers were already battling operational and financial headwinds before the enactment of the One Big Beautiful Bill Act (OBBB). Some of the nation’s most prominent Medicaid managed care organizations (MCO) reported that rising medical costs resulted in declining earnings during the second quarter of 2025. The situation was dire enough for Fitch Ratings to lower the insurance sector’s outlook from neutral to deteriorating in mid-June. The new law will intensify pressure on insurer’s bottom lines and force them to move quickly on making important operational changes.
While the OBBB’s Medicaid provisions aren’t required to...
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