Latest Milliman Report on MCO Financials is Out!

We look out for this one each year because of the high quality, unique insights contained year after year.

This report summarizes the calendar year 2017 experience for selected financial metrics of organizations reporting Medicaid experience under the Title XIX Medicaid line of business on the National Association of Insurance Commissioners annual statement. The primary purpose of this report is to provide reference and benchmarking information for certain key financial metrics used in the day-to-day analysis of Medicaid managed care organization financial performance.

Key findings from the analysis include:

  1. The average underwriting gain of 0.9% in calendar year (CY) 2017 remained relatively stable from the composite gains observed in CY 2016.
  2. During the past ten years of our analysis, the data studied for the report has seen a 250% growth in membership and over 400% growth in revenue for the studied Medicaid managed care programs
  3. Medicaid-managed-care-financial-results-2017Administrative expenses continue to increase on a per member per month basis, but decrease as a percentage of revenue has been observed from CY 2016 to CY 2017.


Here’s a link to the report on the Milliman site –

It’s also attached here, but if you visit the Milliman page you can learn more about the authors and find other analyses and publications.