Policy Brief - State Medicaid Directors Driving Innovation: Payment Reform

The National Association of Medicaid Directors (NAMD) is engaging states in shared learning around how Medicaid directors can drive payment and delivery system innovations. Many states are facing ongoing budget challenges that put pressure on Medicaid Directors to find cost savings in their programs wherever they can. To a large extent, states have addressed the inefficiencies in their programs. To fill growing budget holes, states have turned to more blunt instruments, such as cutting benefits, cutting eligibility, and cutting provider rates. Instead, states are looking for more sustainable reforms that allow the Medicaid program to provide high-quality services while reducing the share of health care programs consume in state budgets.