Importance: There is increased interest in public reporting of, and linking financial incentives to, the performance of organizations on health equity metrics, but variation across organizations could reflect differences in performance or selection bias.
Objective: To assess whether differences across health plans in sex- and age-adjusted racial disparities are associated with performance or selection bias.
Design, Setting, And Participants: This cross-sectional study leveraged a natural experiment, wherein a southern US state randomly assigned much of its Medicaid population to 1 of 5 plans after shifting to managed care in 2012.