Incorporating Value-Based Payment into State-Directed Payment Arrangements can Improve Outcomes for Dually Eligible Individuals

The high rates of health care needs among dually eligible individuals concern many policymakers. For the eleven million dually eligible individuals enrolled in Medicaid managed care plans, state-directed payments are a powerful yet underused payment tool to reward plans and providers for producing better outcomes. In this Health Affairs Forefront article, we explain what SDPs involve and how states can use them to create incentives for health plans to improve health outcomes for dually eligible individuals.