California is just one of the states looking to Managed Care to better care for the high risk beneficiaries in their state. By partnering with a Managed Care plan instead of paying fee for service, they'll be able to better care for the at risk patients. The team taking over the care, Molina Healthcare of California, will work with the beneficiaries to provide better care from the beginning, and avoiding the high cost of emergency care that can be prevented. This arrangement also allows for education and recognition of which populations need education. According to Manged Care Mag, by providing the education to these individuals, they can also minimize high cost of future care that can be avoided.
With Medicaid accounting for anywhere from 1/4th to 1/3rd if annual budgets are spent on Medicaid. By shifting to the manged care model, states can also care for more people. Many are looking to expand to new populations, new geographies and new services, provided by a pre-arranged network arranged by the Manged Care program.