Stressed states open doors to Medicaid managed care.

For California legislators and specialized Medicaid operations like Molina, shifting ABDs to managed care makes sense. Highrisk Medicaid beneficiaries need the small army of nurses, providers, and case workers that a plan like Molina deploys to help coordinate care and eliminate ER visits, readmissions, and other costly and avoidable interventions. Even though the state pays plans a higher per-member-per-month capitated fee for the at-risk population than it does for mainstream beneficiaries, California expects to save money compared to keeping them in the fee-for-service program. And right now, saving money on Medicaid has become one of the highest priorities in state governments across the country.