Trends in Health Plans Serving Medicaid: 2000 Data Update.

As enrollment in Medicaid managed care grew through the 1990s, the number of health plans willing to participate in state Medicaid programs became a growing concern. Notes that between 1997 and 1999, 15% to 17% of participating plans exited Medicaid annually, a higher rate than in previous years. Furthermore, plan departures in 1998 and 1999 occurred more broadly nationwide compared to 1997, when departures were concentrated in certain areas and driven by a few national managed care organizations. The number of Medicaid-dominated plans and the size of their enrollment grew since 1997, and these plans appeared financially stronger in 1999, compared to 1997.