Commentary and analysis from outside consulting and policy firms — not part of Medicaid Monitor's independently scored news coverage. Each piece links back to the firm's original publication.
How Medicaid MCOs Can Improve Care Coordination and Outcomes for Child Welfare-Involved Children
Children in the child welfare system face fragmented care across multiple systems—Medicaid, foster care, behavioral health, education—with frequent placement changes disrupting medical homes and treatment continuity. Health plans can bridge these gaps through integrated care models, specialized provider networks for trauma-informed and behavioral health services, and improved data sharing with child welfare agencies. The piece argues MCOs are uniquely positioned to coordinate across agencies and address the severe shortage of child-focused behavioral health providers serving this high-need population.
Behavioral Health · Managed CareGLP-1 Coverage for Obesity Treatment Remains Limited in Medicaid Despite Growing Pipeline
Coverage of anti-obesity medications, particularly GLP-1 receptor agonists, varies significantly across payer types, with Medicaid programs showing particularly restrictive policies despite a growing pipeline of over 40 products and projected market growth to $150 billion by 2030. The analysis examines how differences between commercial, Medicare, and Medicaid coverage create access disparities, with implications for state Medicaid programs navigating budget pressures alongside federal policy efforts to expand access. Medicaid managed care plans face particular challenges balancing long-term value against immediate cost concerns as member uptake increases.
Pharmacy · Managed CareMedicare Advantage LTC Benefits Fall Short of Comprehensive Coverage, Leaving Gaps Medicaid Must Fill
Milliman analyzes the limitations of long-term care supplemental benefits now permitted in Medicare Advantage plans since 2019, finding they cover only a fraction of typical LTC costs that run $70,000-$130,000 annually. The piece examines what MA plans can offer for home health, adult day care, and caregiver support versus the comprehensive custodial care needs of aging beneficiaries. This matters for Medicaid managed care because when MA benefits are exhausted, beneficiaries often spend down to Medicaid eligibility, shifting LTC costs to state programs and dual-eligible plans.
Long-Term Care · Managed CareUSPSTF Recommendations Drive Preventive Care Coverage Requirements for Medicaid and Commercial Plans
USPSTF's A and B grade recommendations mandate coverage without cost sharing under the ACA for both commercial and public insurers, including Medicaid programs. The piece outlines how diagnostics developers and biopharmaceutical companies can strategically engage with USPSTF through new topic nominations or existing topic reconsiderations to influence preventive care coverage policies. While focused primarily on the evidence generation and USPSTF engagement process, the coverage mandate implications extend directly to Medicaid managed care organizations' benefit design and compliance obligations.
Medicaid at 60: Consultancy Reflects on Program Evolution and Post-Budget Reconciliation Uncertainty
Sellers Dorsey marks Medicaid's 60th anniversary by highlighting key policy expansions including 12-month continuous eligibility for children, extended postpartum coverage, and the shift toward value-based care models. The firm acknowledges that while these milestones have expanded access and improved outcomes, the program now faces "major policy changes" following passage of H.R. 1, creating uncertainty for state programs and managed care organizations navigating the budget reconciliation landscape.
Managed Care · Behavioral Health · Maternal · Long-Term Care · FinanceMedicaid Unwinding and New Federal Redetermination Rules Threaten Adult Vaccine Access
Avalere examines how the end of Medicaid continuous enrollment led to 10 million disenrollments in 12 months, creating vaccine access barriers despite IRA protections, with state-by-state variation complicating national assessment. The analysis warns that new federal requirements under the One Big Beautiful Bill Act—including six-month eligibility redeterminations and work requirements—will likely worsen coverage churn and vaccination gaps. MCOs and state programs face intensifying challenges in maintaining preventive care continuity as enrollment volatility increases under the new policy environment.
Managed Care · FinanceFederal Diabetes Research Program Yields $50B in Savings, Including Through Medicaid
Avalere estimates that research funded by the Special Diabetes Program has generated over $50 billion in federal healthcare savings through technologies like continuous glucose monitors and automated insulin delivery systems used by Medicare, Medicaid, and VA beneficiaries. The analysis focuses on direct medical cost reductions from improved diabetes management and reduced complications, with Medicaid representing one of three major public payers benefiting from these innovations. The findings have implications for how states and MCOs assess value from diabetes management technologies and clinical interventions.
Managed Care · FinanceCMS Releases 400+ New Diagnosis Codes for FY 2026, Effective October 1
The Centers for Medicare & Medicaid Services and CDC have announced over 400 new ICD-10-CM diagnostic codes taking effect October 1, 2025, including codes for diabetes remission, multiple sclerosis progression, and various other conditions. These coding changes will affect claims processing, documentation requirements, and reimbursement methodologies for Medicaid managed care plans that rely on encounter data and risk adjustment. MCOs will need to update systems, train providers, and adjust coding workflows ahead of the October implementation date.
Managed Care · FinanceMilliman Releases 2024 Financial Benchmark Data for Medicaid MCOs
Milliman's annual benchmarking report analyzes key financial performance metrics for Medicaid managed care organizations using standardized NAIC reporting data from 2024. The report provides comparative financial benchmarks that MCO finance teams, state Medicaid agencies, and consultants use to assess plan performance, evaluate rate adequacy, and identify industry trends. This type of standardized financial analysis is a core reference tool for compliance officers reviewing financial solvency and state officials conducting rate-setting and contract oversight.
Managed Care · FinanceACA Subsidy Expiration and H.R. 1 Changes Will Drive Massive Coverage Loss in Non-Expansion States
Manatt analyzes how the One Big Beautiful Bill's Marketplace changes and the lapse of enhanced ACA subsidies will disproportionately harm the ten states that haven't expanded Medicaid, where over half of Marketplace enrollees earn under 138% FPL compared to just 9% in expansion states. The piece argues these states face dual exposure: while somewhat insulated from Medicaid work requirement losses, they depend heavily on subsidized Marketplace coverage for low-income populations excluded from their narrower Medicaid programs, meaning January 2026 implementation will drive major uncompensated care increases and provider financial strain. This matters for Medicaid MCO professionals because coverage dynamics in non-expansion states directly affect the populations at the Medicaid-Marketplace boundary and the safety net infrastructure that serves dual-eligible and Medicaid populations.
Managed Care · FinanceACIP Reconstitution May Reshape Vaccine Coverage Requirements for Medicaid Plans
The Advisory Committee on Immunization Practices was reconstituted with new members appointed by HHS Secretary Kennedy, signaling potential shifts in vaccine policy that could affect coverage mandates. Since ACIP recommendations trigger first-dollar coverage requirements across insurance programs including Medicaid, changes in the committee's direction could impact formulary requirements, preventive care mandates, and cost structures for Medicaid managed care plans. The piece examines how the committee's new composition may influence immunization schedules that directly affect MCO coverage obligations.
Behavioral Health System Redesign Requires Integration and Early Intervention, Not Just Crisis Response
The piece argues that fragmented behavioral health delivery—especially in states where mild-to-moderate and serious mental illness care are split between entities—creates dangerous gaps that push people into crisis and homelessness. It calls for a paradigm shift toward community-based early intervention, integration with physical health, and culturally responsive care models that prevent decompensation rather than only responding to acute episodes. For Medicaid MCO compliance teams and state directors, this frames core challenges in behavioral health carve-in versus carve-out models and the case for upstream investment in social supports.
Behavioral Health · Managed CareProposed AHRQ Budget Cuts Could Disrupt Medicaid Preventive Care Coverage Requirements
The Trump administration's proposed elimination of AHRQ's independent structure and $129 million budget cut threatens the USPSTF's ability to produce evidence-based preventive care recommendations. Because Medicaid managed care plans are required to cover USPSTF Grade A and B services without cost-sharing under the ACA, disruption to this process could create coverage uncertainty and compliance challenges for MCOs. The reorganization raises concerns about the independence and capacity of the evidence review process that drives mandatory preventive benefit design across commercial and public insurance.
Managed CareSenate Reconciliation Bill Deepens Medicaid Cuts Beyond House Version, Targeting Provider Taxes and State-Directed Payments in Expansion States
The Senate Finance Committee's reconciliation draft mirrors core House provisions but introduces significantly deeper Medicaid funding cuts, particularly affecting expansion states. Key changes include reducing the provider tax cap from 6% to 3.5% for expansion states over time and requiring expansion states to phase down state-directed payments by ten percentage points annually until they reach 100% of Medicare rates. These provisions would fundamentally reshape Medicaid financing mechanisms that MCOs and states currently rely on, with major implications for rate adequacy and plan sustainability.
Managed Care · FinanceChild Welfare Agencies Can Strengthen FQHC Partnerships to Address Complex Health Needs of Vulnerable Families
Sellers Dorsey explores how federally qualified health centers can serve children and families in the child welfare system through comprehensive medical, behavioral health, and substance use services. The discussion covers partnership opportunities including referral agreements and care coordination protocols between child welfare agencies and FQHCs. This matters for Medicaid managed care because many children in child welfare are Medicaid-enrolled and coordination between these systems affects utilization, outcomes, and network adequacy for vulnerable populations.
Behavioral Health · Managed CareAdding Social Determinants to Medicaid Risk Adjustment Reduces Payment Volatility, Especially for Low-Morbidity Populations
Milliman research finds that incorporating social determinants of health into Medicaid managed care risk adjustment models produces modestly better payment accuracy and reduces financial volatility for MCOs and ACOs. The improvement is most pronounced for beneficiaries with lower medical complexity but higher social risk, where morbidity-only models systematically underpay plans—suggesting SDOH factors help correct revenue distortions when members face barriers to care that suppress diagnosis coding. The findings offer technical guidance for state Medicaid agencies considering updates to capitation rate-setting methodologies.
Managed Care · FinanceTrump Administration Pivots Behavioral Health Policy Away from Integration Toward Cost Control
The administration is shifting away from behavioral health integration and parity enforcement through changes at CMMI, potential weakening of mental health parity requirements, and proposed cuts to SAMHSA and CDC. These policy changes could significantly affect how Medicaid managed care plans structure behavioral health benefits, enforce parity, and participate in value-based models. The proposed FY 2026 budget cuts to SAMHSA ($1.1B reduction) and consideration of dissolving the agency altogether would directly impact state Medicaid behavioral health infrastructure and MCO programming.
Behavioral Health · Managed CareFamily CNA Model Gains Traction as Medicaid Strategy for Children with Medical Complexity
A new Manatt Health analysis examines state Medicaid programs that are training and reimbursing family members to provide in-home nursing care for medically complex children, addressing workforce shortages while keeping children out of institutional settings. The Family CNA model allows parents and relatives to become certified to perform tasks like medication administration and G-tube care that would otherwise require licensed nurses. The approach targets a small patient population that accounts for one-third of pediatric costs and aims to prevent costly ER visits and hospitalizations while supporting family financial security.
Managed Care · Long-Term Care · LTSSMedicare Drug Price Negotiation Changes Could Affect Medicaid Best Price Calculations
CMS released draft guidance for the 2028 cycle of Medicare drug price negotiations under the Inflation Reduction Act, expanding eligibility to include Part B drugs for the first time and proposing a single maximum fair price across Part B and Part D. While focused on Medicare policy, these negotiated prices have downstream implications for Medicaid managed care organizations through potential impacts on best price calculations and supplemental rebate agreements. The guidance also refines manufacturer exclusion criteria and seeks comment on how to evaluate therapeutic alternatives.
PharmacyLiterature Review Examines PBM Functions and Value Across Payer Types, Including Managed Medicaid
Avalere's white paper synthesizes published evidence on PBM roles across the healthcare system, including their administration of prescription benefits for managed Medicaid plans alongside commercial, employer, and Medicare Part D populations. The review examines PBM impact on costs, access, and clinical outcomes, finding evidence of adherence improvements and cost savings through rebate negotiations, while acknowledging heightened regulatory scrutiny from federal and state policymakers. For Medicaid MCO pharmacy directors and compliance teams, the paper provides context on PBM value propositions and evolving oversight landscape relevant to their vendor relationships and state contract requirements.
Pharmacy · Managed Care