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Medicaid Consulting

AndoverEcon offers consulting services to help state Medicaid agencies with policy development and program evaluation. We have particular expertise in program evaluation, analysis of provider payment rates, and projecting the cost savings of proposed changes in eligibility, benefits, and care management activities.

Medicaid Research Experience

Since writing his dissertation on interstate differences in Medicaid spending in 1979, our company president, Thomas Grannemann, Ph.D., has conducted research and policy analysis on a wide range of Medicaid-related topics including:

  • Benchmarked Medicaid payment rates with those of other-payers (Medicare and private sector).


  • Developed plans for a competitive bidding program for four non-emergency Medicaid services.


  • Designed new payment methods for Community Mental Health Centers and atypical nursing facilities.


  • Analyzed potential impact of a federal Medicare drug benefit on state Medicaid spending for dual eligibles


  • Prepared cost-effectiveness analyses for federal waiver applications.


  • Analyzed Medicaid ambulatory surgery payment rates.


  • Analyzed interstate variations in Medicaid spending.


  • Evaluated community based long-term care waiver programs


  • Developed targeting strategies for community based long-term care programs designed to reduce nursing home use


  • Analyzed the potential for using risk-based payments for long-term care.


Areas of Medicaid Expertise

AndoverEcon offers years of experience evaluating federal and state policy issues concerning the Medicaid program. We have addressed program and policy issues in a wide range of areas, including provider payment, long-term care, hospital costs, physician productivity, AIDS, disability, and chronic care.  We bring the ability to:

  • Assess the potential impact of cuts in eligibility and benefits on costs, quality, and access to care for Medicaid populations


  • Measure the costs and outcomes of new Medicaid program initiatives and waiver projects


  • Compare state Medicaid provider payment rates with those of other states and with local Medicare benchmarks


  • Provide detailed measures of program performance based on analysis of Medicaid claims databases


  • Evaluate specific provider payment policies and develop payment methods to address specified needs






Medicaid Budget Cutting Strategies
Dr. Grannemann written widely on Medicaid cost control strategies. His book with Mark Pauly Controlling Medicaid Cost: Federalism, Competition, and Choice highlighted the important role of federal incentives for states.

He has prepared numerous briefing papers on variety of Medicaid issues including a cost-benefit analysis of Medicaid co-payments, the effects eligibility and service cuts, prospective outpatient payment methods, and the potential impact of a Medicare drug benefit on state Medicaid payments.
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Andover Economic Evaluation
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Bradford, MA 01835
978-372-7123