Managed Care
States Consider Value-Based HCBS Contracts to Avoid Benefit Cuts During Economic Downturn
Industry leaders at Home Health Care News' PAYER Summit in June said state Medicaid programs facing budget pressure from economic downturns could pursue value-based contracts with home- and community-based services providers rather than restricting benefits or cutting services outright. The strategy shifts financial risk to providers while preserving access. No specific states or implementation timelines were identified. This approach matters for HCBS providers and managed care organizations managing LTSS populations as states seek budget-neutral alternatives to traditional cost containment.
Why it mattersStates under fiscal pressure may accelerate value-based HCBS contracting, shifting downside risk to providers and MCOs while avoiding politically costly benefit cuts.