Are Incentives Effective in Improving the Performance of Managed Care Plans?
A number of studies have described performance incentives for managed care plans employed by leading public and private purchasers. There has been very little analysis, however, regarding the effectiveness of these incentives to improve the performance of contracted plans. This Resource Paper provides Medicaid agencies with relevant information on public and private purchasers' experience with performance incentives. By holding plans accountable for their performance in targeted areas, these purchasers are working to increase the value of the services provided by contracted plans.