Louisiana
Louisiana Legislative Auditor
Published March 5, 2025

Managed Care Incentive Payment Program

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Overall Conclusion

LDH’s design and lack of oversight of the MCIP program led to the majority of MCIP funds being paid for activities that do not have a direct, measurable result for how they improve access to healthcare, improve quality of care, or enhance the health of Medicaid beneficiaries.

Source Document

Audit Scope

Evaluation of LDH’s design and oversight of the Medicaid Managed Care Incentive Payment (MCIP) program, covering September 2019 through March 2024.

Key Findings Summary

1

LDH did not monitor how MCIP funds were used by MCOs or Quality Networks, leading to substantial funds ($1.08 billion) being spent on non-incentive activities.

2

The MCIP program total cost was about $2.39 billion from Sept 2019 through March 2024.

3

LDH’s design and oversight gaps led to MCIP funds being paid for activities not directly tied to measurable improvements in access, quality, or health outcomes for Medicaid beneficiaries.

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AI-Assisted

Generated by gpt-5-nano

AI Scope Summary

Future Medicaid audits could build on MCIP findings by evaluating whether consolidating AIAs and standardizing milestones across incentive programs improves accountability, efficiency, and measurable health outcomes; assess the continued appropriateness of IGT-based non-federal funding and explore alternative funding models.

AI-Generated Insight

The MCIP program demonstrates how incentive programs can drive funding to healthcare providers but also highlights critical gaps in governance and accountability when milestones are not clearly tied to measurable outcomes; the report supports pursuing uniform AIAs and stronger monitoring to improve efficiency and health outcomes.