There is a growing desire at the federal and state levels of government to address health disparities that have proven to be persistent over time. State Medicaid agencies, as purchasers of healthcare services for diverse populations, are uniquely positioned to wield their financing and policy tools thoughtfully and proactively to address health inequities. In this paper, we cover the following topics:
- Risk adjustment in Medicaid
- A comparison of two prominent risk score algorithms: Chronic Illness and Disability Payment System (CDPS), and Milliman Advanced Risk Adjusters (MARA)
- Our analysis of healthcare utilization patterns
- Potential policy options