Medicaid Managed Care Pharmacy Costs 15 Percent Less Than Fee-For Service

America’s Health Insurance Plans (AHIP), the main trade association for health plans, has released research comparing pharmacy costs in states where Medicaid pharmacy benefits are “carved in” versus “carved out.”

“Carved in” means that a managed care organization manages the benefit. “Carved out” means the Medicaid bureaucracy manages it directly. The latter costs a lot more.

Read the entire column at NCPA's Health Policy Blog.