Giving physicians incentives to contain costs under Medicaid

In this article, the risk arrangements in Medicaid programs that put physicians at risk are summarized. These programs—partial capitation and health insuring organizations—pay physicians a capitation amount to cover some or all physician services. Physicians also receive part of the savings from reduced hospitalization. Most of these programs have successfully lowered Medicaid costs. They could serve as models for other Medicaid programs, State-level programs to cover people ineligible for Medicaid, and programs abroad, such as in the United Kingdom.