Medicaid Profitability During the Public Health Emergency

The pandemic is widely viewed as a windfall for insurers because of the decrease in the utilization of healthcare. It is less well understood how profitability trended in Medicaid managed care.

The purpose of this report is to see how managed Medicaid health plans fared financially in 2020-2022 compared to prior years. Our findings show that while margin did increase, the Medicaid margin levels were explainable, and not abnormal relative to other lines of business experience.