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Table 5.B Major Program Features and Requirements of Managed Care Authorities

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Authorities for Managed Care

Feature Section 1115 Section 1915(a) Section 1915(b) Section 1932(a)
Defined Network of Providers Yes Yes Yes Yes
Limited Number of Qualified Contractors Yes No Yes
(at least 2 options usually required)

Yes
(at least 2 options usually required)

Capitated Payments Yes Yes Yes Yes
Mandatory Enrollment Yes No Yes

Yes

(certain populations exempted)

Limited Geographic Area Yes Yes Yes Yes
Targeted Population Yes Yes Yes Yes
Expand Eligibility Yes No No No
Additional Benefits Yes Yes Yes Yes
Budget Test Budget neutral None Cost Effective None
Approval Mechanism Descretion of HHS and subject to negotiations Managed care contract approved by CMS Waiver application approved by CMS; managed care contract approved by CMS State plan amendment and managed care contract approved by CMS

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