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Attached are the March and April 2017 editions of the 5 Slide Series. The March edition tabulates the progression in Medicaid spending from 2012 – 2016, nationwide and with subtotals for states that did and didn’t adopt Medicaid expansion. One key statistic from this edition is that capitation rose from 25.7% of all Medicaid spending in 2012 to 48.7% in 2016 – the capitated model will likely represent the majority of Medicaid spending from 2017 forward.
The April edition provides Medicaid MCO financial performance statistics for 2015 – a compilation of 199 MCO financial statements. Collectively the industry earned a 2.4% operating margin on Medicaid business during 2015 with 71% of the MCOs achieving a positive margin and 29% experiencing a loss. An interesting finding was that the health plans’ percent operating margins were not correlated with plan size.