Managed Care Organizations
Managed Care Organizations (MCOs) are health plans that manage healthcare services to control costs while maintaining quality care through networks of contracted providers. MCOs, such as HMOs and PPOs, employ strategies like preventive care, utilization management, and financial incentives to influence how members access services, thereby providing cost-effective, high-quality care. Many states use MCOs to administer Medicaid and Medicare Advantage plans, receiving fixed payments per member to coordinate and deliver services. How MCOs Work Contracting with Providers MCOs enter into agreements with hospitals, doctors, specialists, and other healthcare facilities to offer services to their members at negotiated rates. Network-Based Care Members are encouraged or required to receive care within