Cost and Use of Capitated Medical Services

Evaluation of the Program for Prepaid Managed Health Care

by Joan L. Buchanan, Arleen Leibowitz, Joan Keesey, Joyce Mann, Cheryl L. Damberg

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Throughout the 1970s and into the early 1980s continuing efforts to control inflation in Medicaid expenditures led states to adopt stricter Medicaid eligibility standards, which in combination with a recession in the early 1980s left nearly 40 percent of the nation's poor without medical coverage. To prevent further restrictions in Medicaid access, the Robert Wood Johnson Foundation (RWJ) sponsored a demonstration project, the Program for Prepaid Managed Health Care (PPMHC) in the first half of the 1980s. This RAND Corporation report contains the design and results from the cost and utilization evaluation of the PPMHC.

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