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Oregon's Capitated Benefit Scheme Shows Success
October 26, 2000

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Research Summary

Researchers say that Medicaid clients' access to addiction treatment improved with the implementation of a capitated benefit program, according to an Oct. 24 press release from the National Institute on Drug Abuse (NIDA).

Researchers at the Oregon Health Sciences University studied the state's model for financing treatment under managed care. They determined that the state's capitated benefit broadened the array of covered treatment services formerly offered to Medicaid patients and improved integration of health-care services among providers.

According to the study, access rates for clients admitted to treatment increased from 5.5 percent under fee-for-service in 1994 to 7.7 percent under the capitated system in 1997.

"The Oregon approach markedly altered the state's organization and financing of drug addiction treatment services," said Dr. Alan I. Leshner, director of NIDA, who helped fund the study. "As a result of appropriate organizational and functional arrangements, access to services was improved for many more Medicaid clients in Oregon."

The Oregon model may serve as a useful guide for other states looking at ways to improve access to treatment services for Medicaid clients.

The study was published in the Oct. 25 issue of the Journal of the American Medical Association.

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