Michigan Medicaid: Relative Cost Effectiveness of Alternative Service Delivery Systems

Abstract

In response to recent dramatic increases in Medicaid spending, the Michigan legislature mandated a study evaluating the cost-effectiveness of capitated managed care involving multiple managed care organizations compared to three alternative delivery systems: fee-for-service, primary care case management, and a capitated managed care program involving a single statewide managed care organization. The Hilltop Institute (as the Center for Health Program Development and Management) was retained by the Michigan Department of Community Health to conduct this study.