Study: A handful of corporations now shape how kids in Medicaid get care: Oregon Health & Science University

2026 AUG 19 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- The United States is in the middle of a well-documented adolescent mental health crisis. Because Medicaid provides medical coverage for roughly half of all children in the country, the program has an essential role in responding to that crisis. Increasingly, that response runs through a small number of large corporations.

New research from Oregon Health & Science University shows that millions of Medicaid-enrolled youth are now covered by managed care organizations owned by one of five national parent firms, and that behavioral health care patterns differ meaningfully depending on which firm a child’s plan belongs to.

The study, published in the journal Health Affairs, is one of the first to assess the role of managed care in addressing adolescent mental health needs.

“The majority of adolescents on Medicaid are covered by managed care, and among those, most are now in a plan owned by one of these five large, national firms,” said lead author John McConnell, Ph.D., director of the OHSU Center for Health Systems Effectiveness. “As these firms come to dominate Medicaid, their choices about how to structure and deliver care have consequences for millions of children, which is exactly why they deserve a closer look.”

The study examined a database of Medicaid claims data encompassing millions of Medicaid-enrolled youths in 2022, the latest year available.

Ownership of the Medicaid managed care market has consolidated rapidly over the past two decades. In 2006, locally governed plans covered most enrollees; by 2022, five national firms - Centene, Elevance Health (formerly Anthem), UnitedHealth Group, Molina Healthcare, and CVS Health - accounted for about half.

Comparing plans owned by these firms with other managed care organizations, the researchers found several consistent patterns:

Researchers aren’t sure what to make of the higher rates of acute care, but McConnell noted that it could reflect a nationwide lack of available outpatient care. A study from OHSU published a year ago noted that thousands of kids nationwide are “boarded” in hospital emergency rooms for three days or more.

“In many ways the nation’s response to the adolescent mental health crisis has been delegated to the managed care system and, increasingly, to a small number of for-profit firms,” the authors write. They conclude, “Given the stakes at hand, closer scrutiny of how large managed care organizations balance corporate strategy with Medicaid’s public mission is warranted.”

The study comes on the heels of a policy report published by the same group of OHSU researchers, published by the Milbank Memorial Fund, asking whether managed care is delivering on its promise.

“We conclude that many of the functions MCOs perform ... could be carried out more transparently and at potentially lower administrative cost through centralized, standardized processes,” the authors write.

The studies raise fundamental questions, said co-author Stephan Lindner, Ph.D., an associate professor at the Center for Health Systems Effectiveness.

“Medicaid is a public program run by the government, but a lot of public money is being administered through managed care organizations run by large, for-profit companies,” he said. “We need to ask, Is this a good use of our money?”

The research published in Health Affairs was supported by the National Institute of Mental Health of the National Institutes of Health, award 1R01MH136975, and the Office of Research Infrastructure Programs in the Office of the Director of the NIH, award S10OD034224. The content is solely the responsibility of the authors and does not necessarily represent the official views of the NIH.

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