This is Science Today. In the mid 1990s, the state
of Colorado found itself swamped by the high cost
of Medicaid benefits for the mentally ill. So two
years ago, the state switched to a system called
capitation, where the state pays a set amount per
Medicaid recipient to contractors who decide which
services the patients need. At the time, mental
health advocates feared that the system might deny
vital services to patients in order to save money.
But according to a new study by Joan Bloom, a public
health expert at the University of California, Berkeley,
the fears were mostly unfounded.
Narrator: For Science Today, I'm Larissa Branin.