Under this model, known as managed care, the state pays a private plan a fixed amount for each person it covers. But it remains uncertain whether managed care preserves health care access, improves care, or even saves money. They found managed care reduced overall spending by 5.6% — or $82 per enrollee per year. The study suggests that managed care can help to significantly reduce costs in one area of health care — prescription drugs — but can worsen patient experiences in others. Still, the trade-offs they found deserve a place in any decision to move more of Medicaid into managed care, they argue.