More states turning to managed care providers

Source: Centene.com

Many state Medicaid programs are turning to Managed Care Programs as coverage is increasing.  According to American Medical News, it's the companies that are specialized that are seeing the best chances at winning new contracts. Centene recently won the rights to manage the Medicaid population in both Louisiana and Kentucky, after expanding their business with Texas earlier this month. The article notes that many of the large investor companies like United Healthcare and Wellpoint.

Why do you think states are going with more targeted Medicaid companies when choosing a Managed Care route for their state run Medicaid?