The next big savings opportunity for managing Medicaid costs is Managed Medicaid Long Term Care. Long Term Care costs account for 34% of the Medicaid budget nationwide. With baby boomers aging, Long Term Care enrollment will only grow. Different states have tried different programs to manage this cost and we are seeing it work well in some states, but not so well in others. Actuaries are often asked to help design viable Managed Medicaid Long Term Care programs, determine the financial viability of programs for managed care companies, and of course, set the rates for these programs as required by CMS’s need for an actuarial certification. This session will describe the intricacies and design of Managed Medicaid Long Term Care programs, provide information on what has historically worked to save costs and what hasn’t, and detail items to consider and understand when setting actuarially sound rates for these programs. From the SOA 2010 Health Meeting, Session 39