Milliman releases new analysis of Medicaid managed care administrative costs
Report includes administrative loss ratios, complements seventh annual study of Medicaid managed care financial results
SEATTLE, June 23, 2015 /PRNewswire/ -- Milliman, Inc., a premier global consulting and actuarial firm, today announced new research into the administrative costs associated with Medicaid managed care plans. These plans have become increasingly popular due to the Affordable Care Act's Medicaid expansion provisions and the continued growth of the managed care delivery system within Medicaid. This information is especially valuable now, with the release of the proposed 2016 CMS capitation rate-setting guidance and the CMS proposed rule for Medicaid managed care. These CMS regulations require greater documentation of Medicaid managed care administrative costs, and may be useful as plans look to establish benchmarks.
"We are excited about the addition of the administrative cost report to the annual financial analysis of Medicaid risk-based managed care reporting," said Jeremy D. Palmer, Milliman principal and consulting actuary. "This is an area of intense focus for the industry as we look to meet increased expectations of transparency in capitation rate-setting and face regulatory reporting of medical loss ratios."
Among other findings, the analysis demonstrates that Medicaid managed care administrative costs are primarily driven by expenditures for human capital and non-income-based taxes and fees.
The administrative cost report complements Milliman's annual analysis of Medicaid managed care financial results, which is now in its seventh year. The administrative cost report will be updated annually.
To see the administrative cost report, go to http://us.milliman.com/insight/2015/Medicaid-risk-based-managed-care-Analysis-of-administrative-costs-for-2014/. To view the annual financial analysis, go to http://us.milliman.com/insight/2015/Medicaid-risk-based-managed-care-Analysis-of-financial-results-for-2014/.
About Milliman
Milliman is among the world's largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit milliman.com.
SOURCE Milliman, Inc.
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