Assessing medicaid managed care in eastern state

This case examined the expanding role of so-called managed care programs in improving health care for the poor while controlling runaway health care costs. The case asked what the commissioner of health, Dr. Lorna Hill, in a large eastern state should do to effectively monitor Medicaid managed care programs in her state. The commissioner faced intense pressures for cost containment and strong, but not universal, support for the managed care solution to health care cost problems. The commissioner was herself concerned that the cost savings attributed to managed care might not be real and the unintended effects on health care might be adverse. Her immediate challenge was to determine what kinds of data she should require service providers to submit to her agency so that she could effectively monitor managed care programs for health care quality, provide positive feedback to health care providers, and establish politically credible program oversight.