AJP Study on Medicaid Managed Care Burden

The managed care plans of Medicaid for Schizophrenic patients as well as other mental ailments may just not be right according to an AJP study. These plans lead to lower expenses for Medicaid by increased costs for patients as well as more caregiver burden.

This study was by David L. Shern. It has long been acknowledged that family burden for mental illness patients has been high. Some situations like drug abuse and violence are tricky as well.

From 1997 through 1999 there was a natural experiment which resulted in the introduction of two kinds of managed health care plans. One was the HMO and the other was a behavioral health carve out plan. These plans were both serviced by the same community mental health center providers.

These plans were contrasted with the fee for service Medicaid plan. Savings within the Medicaid budget were offset by personal expenditures and outside contributions. Society costs were not reduced by Medicaid specific savings. Due to cost substitution, already destitute individuals may be further impoverished and get inefficient treatment according to the study.