Online Program

Impact of Medicaid Managed Care Program on the State Cost and Medical Care Expenditures: Evidence from a Pilot Program in Illinois

Monday, November 2, 2015 : 1:10 p.m. - 1:30 p.m.

Coady Wing, PhD, School of Public and Environmental Affairs, Indiana University, Bloomington, IN
Kiyoshi Yamaki, PhD, Department of Disability and Human Development, College of Applied Health Sciences, University of Illinois at Chicago, Chicago, IL
Dale Mitchell, PhD, Department of Disabiltiy and Human Development, University of Illinois at Chicago, Chicago, IL
Randall Owen, PhD, Department of Disabiltiy and Human Development, University of Illinois at Chicago, Chicago, IL
Tamar Heller, PhD, Department of Disability and Human Development, University of Illinois at Chicago, Chicago, IL

In an effort to control costs and improve service quality, the Illinois’ Integrated Care Program (ICP) has been transferring Medicaid members with disabilities from the fee-for-service (FFS) model to a managed care model operated by private insurers.  We evaluated the effect of the ICP on health care costs and utilization.


We obtained pre and post-ICP claims, encounters, and capitated payment data from ICP eligible Medicaid enrollees in the suburbs of Chicago, where ICP was pilot tested. The city of Chicago was the comparison site. We used inverse propensity score weights to construct a comparison group of Chicago Medicaid enrollees who matched the suburban group in demographics, health characteristics, and past health care utilization and expenditures, but who continued with standard FFS Medicaid. Then we estimated the impact of the program by estimating difference in difference (DID) and comparative interrupted time series (CITS) regression models on the matched samples.


Preliminary analysis of the matched samples suggests that overall costs to the state decreased by $44/member/month under the ICP program. Month to month volatility in the state’s costs also declined under the new program.  Findings on emergency room, inpatient, and outpatient medical care expenditure will also be presented.


Our findings indicate that the level of care received by low income people with disabilities, and the costs incurred by state governments attempting to provide that care may depend on the health service delivery model.

Learning Areas:

Provision of health care to the public
Public health administration or related administration
Public health or related laws, regulations, standards, or guidelines
Public health or related organizational policy, standards, or other guidelines
Public health or related public policy
Public health or related research

Learning Objectives:
Differentiate between the fee-for-service model and the managed care model in state Medicaid program. List some key findings on the impact of Medicaid managed care on health care cost and utilization among Medicaid recipients with disabilities.

Keyword(s): Medicaid, Managed Care

Presenting author's disclosure statement:

Qualified on the content I am responsible for because: I am experienced in qusai-experimental research and took the lead in the present analysis.
Any relevant financial relationships? No

I agree to comply with the American Public Health Association Conflict of Interest and Commercial Support Guidelines, and to disclose to the participants any off-label or experimental uses of a commercial product or service discussed in my presentation.

Back to: 3273.0: Medicaid and the ACA