MHPA responds to CMS annual report on Medicaid managed care enrollment

Medicaid Health Plans of America (MHPA), the leading trade association solely focused on representing Medicaid health plans, responded today to an annual report just released by the Centers for Medicare and Medicaid Services (CMS) on Medicaid managed care enrollment, which showed Medicaid health plan enrollment grew by almost 2.4 million members in 2009 to more than 23.4 million Americans nationwide.

"States are increasingly turning to Medicaid health plans to manage benefits in their Medicaid programs," said MHPA President & CEO Thomas L. Johnson.  "They understand the benefits of health plans in coordinating care and improving quality, which allows for the provision of Medicaid benefits at a lower, more predictable cost than fee-for-service traditional Medicaid."

While growth in enrollment in the Medicaid program increased seven percent from June 2008 to June 2009, enrollment in Medicaid health plans increased more than 11%.  About 47% of all Medicaid beneficiaries are now enrolled in a Medicaid health plan, and when counting all types of Medicaid managed care arrangements, almost 72% of the individuals in Medicaid are enrolled in some form of managed care. Ten years ago that number was just 55%. Medicaid health plans also serve most of the children in the Children's Health Insurance Program, numbers not reflected in this report.

Projections show that Medicaid enrollment will grow from between 16 million and 24 million individuals beginning in 2014, when the Medicaid expansion in the new health care reform law takes effect. Medicaid health plans are well-positioned to serve many of these new enrollees.

"Medicaid health plans serve low-income women, children, disabled and senior populations around the country, many of whom reside in minority communities and have unique health and social needs," explained Johnson. "Health plans add value in Medicaid by providing access to a medical home managed by a primary care provider and including a broad network of other providers that meet the cultural, medical and social needs of these populations."

All Medicaid health plans participate in the Medicaid safety net and contract with other safety net providers including public hospitals and community health centers. The new enrollment report shows substantial growth in all types of Medicaid health plans, regardless of size, ownership or financial status.