Engine of Change or One Force Among Many? Section 1115 Demonstration Projects and Trends in Medicaid Expenditures. Perspectives on Medicaid Managed Care.

Describes trends in expenditures on medical benefits and on program administration in the five study states and compares them to those in the nation as a whole. Notes that there is no clear evidence that the demonstrations had a dramatic impact on expenditures in any of the states. Expenditures on medical benefits are more closely linked to changes in enrollment. State-specific program factors appear to have had a greater influence than the general introduction of managed care on administrative expenditures.