Start-Up Plan Feasibility Review

Client Challenge:

Cirdan’s client was considering whether to establish a new Medicaid health plan but lacked the internal expertise to determine whether the initiative was financially feasible.

Our Solution:

• Cirdan prepared a multi-year projection of the estimated start-up costs as well as the likely revenue and claims that would be expected for the operation
• Cirdan provided an analysis of the capital contribution needed to meet minimum statutory requirements
• Cirdan provided an inventory of the the various tasks that would be required to start a plan

The Result:

We helped our client understand the necessary planning, activities and capital required to start a health plan. Ultimately, while the long run financial scenarios indicated that a plan could be viable, the client determined the up front investment of money and time was not in its best interest.