States consider Medicaid ACOs to remedy unsustainable spending: 4 things to know

Medicaid payments are increasingly becoming state budget busters as the program covers frequent emergency room admissions and outpatient tests, according to Kaiser Health News.

Here are four things to know about why some states are turning to Medicaid ACOs to alleviate financial load:

1. Minnesota is one of the states that has implemented an ACO model for its Medicaid program. The state rewards providers and hospitals that lower costs by maintaining enrollees’ health. Addressing enrollees’ social determinants, such as lack of transportation, poor diet and homelessness, is one of the ways providers are attempting to keep enrollees healthy.

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