The short answer is that managed care organizations make money by saving money- the goal is to keep patient populations healthier in the first place, so they aren't utilizing costly services. While all eight states in the RWJ study saved money, some also increased revenue as a result of expansion. Managed Care, sometimes called Managed Medicaid, means that a state has contracted with a private insurance company to provide Medicaid benefits on behalf of the state. The rollout will come in two phases: the first in November, and the rest in February 2020. About 1.6 million of the state’s 2.1 million Medicaid recipients will move into the managed care system.

The Georgia Hospital Association, in its report, said a large share of the money paid by the state for its Medicaid managed care program has gone to corporate coffers.
More than half of people on Medicaid across the country are in some sort of “risk-based managed care organizations (MCOs)” and 39 states – according to comprehensive research by the Kaiser Family Foundation – use such entities. Managed care proponents argue that these systemic changes — which include better care coordination, closer assessment of which services are … Could managed care plans save even a fraction of those health care dollars by providing a suite of social supports to their members? By Rebecca Adams, CQ HealthBeat Associate Editor. Medicaid Managed Care Is Complex And Highly Variable Although advocates of Medicaid managed care argue that contracted plans are “saving money … The state pays the insurance company a set amount each month, and in return, the company provides their Medicaid members with healthcare services. Medicaid managed care provides for the delivery of Medicaid health benefits and additional services through contracted arrangements between state Medicaid agencies and managed care organizations (MCOs) that accept a set per member per month (capitation) payment for these services. States such as Florida, Indiana, Kentucky, Louisiana, Missouri, Ohio, South Carolina and Texas attempted to turn over their entire Medicaid programs to … Medicaid managed care has the potential to significantly improve access to health care and health outcomes for the Medicaid population. 28 September 2010 Jason Shafrin 1 Comment In the 1990s, State Medicaid programs turned to Managed Care Organizations (MCOs) to reduce costs. “For fiscal year 2012 alone, between $360 million and $440 million could be paid by the state to … The rollout will come in two phases: the first in November, and the rest in February 2020. July 20, 2012 -- Federal officials are planning a widespread test next year to see whether moving as many as 2 million low-income people into managed care health plans can save money without undercutting the quality of the care patients get. Expansion added 320,000 people to the state’s Medicaid … By contracting with various types of MCOs to deliver Medicaid program health care services to their beneficiaries, states can reduce Medicaid program costs and better manage … For example, Michigan imposes a 1 percent tax on health insurance claims, including those filed with its Medicaid managed care plans.