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Projected Savings of Medicaid Capitated Care: National and State-by-State

We were asked by the Association for Community Affiliated Plans (ACAP) to estimate the Medicaid savings created by the capitated coordinated care model. The report estimates the savings each state is achieving with its existing capitation program, as well as the additional savings that will occur if remaining fee-for-service Medicaid spending in each state is transitioned to capitation through contracts with managed care organizations (MCOs).  Savings estimates are provided within each state for each major Medicaid eligibility group.   Nationwide savings from existing Medicaid MCO capitation programs are estimated at $2.1 billion in 2011, increasing to $6.4 billion in 2016. 

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