The Balanced Budget Act (BBA) of 1997 (Public Law 105-33) contained a number of provisions affecting Medicaid managed care plans. Under the BBA, States will be able to implement mandatory managed care programs without obtaining section 1915(b) or section 1115 waivers. States may also require most Medicaid recipients to enroll in managed care organizations (MCOs). Additionally, the MCOs are no longer required to enroll non-Medicaid members for 25 percent of total enrollment (
Schneider, 1998). Most provisions of the BBA became effective in Federal FY 1998 and as such have had little effect on the 1997 figures.