KEY FINDING 7
Medicaid Trends Differently, and that Signal Matters

Medicaid MCO shows the highest license status issue rate
Medicaid Managed Care Organizations (MCO) show a higher exclusion rate and a higher license status issue rate than the other payer categories examined in the segment-level data. The sample behind this finding is smaller than the other segments, so it's discussed here alongside the caveats that come with it.
But it's important to highlight because Medicaid MCO has drawn increasing regulatory attention around directory accuracy in recent months — attention that sharpened further in April 2026, when CMS directed all 50 states to swiftly revalidate high-risk Medicaid providers. Within the subset, six organizations have Medicaid MCO as their primary line of business, covering 128,436 providers. Since this is a smaller sample than the Commercial, Medicare Advantage, or Affordable Care Act Plan segments, the findings here should be read as directional rather than a definitive industry-wide rate for Medicaid.
With that caveat in place, the Medicaid MCO segment shows the highest exclusion rate of the four segments examined, at 0.057%, compared to 0.042% for Commercial, 0.045% for Medicare Advantage, and 0.033% for Affordable Care Act Plans. It also shows the highest license status issue rate, at 22.5% or roughly 1 in 4.5 providers. Both figures point the same direction: this segment carries somewhat more exposure than the others in this sample.
These findings align with the broader regulatory conversation currently underway around Medicaid managed care directory accuracy and provider revalidation. This report does not attempt to resolve that policy discussion but notes that the pattern in this data is consistent with the concerns driving it.
Given the sample size, this section should be treated as an early signal worth watching, not a settled finding. A larger Medicaid-specific sample, or corroborating data from state-level directory audits, would strengthen this picture considerably.

In April 2026, CMS directed all 50 states to swiftly revalidate high-risk Medicaid providers.

