Using Data Strategically in Medicaid Managed Care.

To meet their managed care goals, states are now collecting large amounts of data, including encounter, HEDIS, CAHPS, and other types of data. This report suggests ways that states can maximize the value of their investment in collecting, analyzing, and using these data by focusing on meeting strategic managed care goals, including improving managed care organization (MCO) performance, demonstrating value to funders (governors, legislators, taxpayers, federal government), building provider support, and building consumer support and understanding. The report contains an extensive discussion of the potential benefits and limitations of encounter data for MCO rate setting and performance measurement.