Private health insurance companies stand to reap a bigger share of the Medicaid business as states deal with budget shortfalls and increased spending on medical care. Illinois, North Carolina and Oklahoma are among the larger states moving more of their state’s Medicaid beneficiaries under the management of private insurers over the next two years. In addition, Florida and Mississippi are renewing Medicaid managed-care contracts with states, according to Medicaid Health Plans of America (MHPA). "More states are moving away from the fragmented care of the antiquated fee-for-service model towards the capitated coordinated care model of managed care organizations,” said Jeff Myers, president and CEO of Medicaid Health Plans of America. Bruce Rauner has announced plans to move more than 80 percent of the state’s Medicaid beneficiaries into private health insurance plans.

Source: Forbes April 13, 2017 12:00 UTC