Analyzing Medicaid MCOs: State Practices for Contracting
Baumgarten A., Robert Wood Johnson Foundation August 26, 2020
Medicaid agencies in 40 states contract with managed care organizations (MCOs) to administer benefits to Medicaid beneficiaries. In 2017, those states paid more than $232 billion to MCOs to manage the care of about 52 million beneficiaries. That is a huge business opportunity for the MCOs and a significant responsibility to the state agencies that select MCOs, set the terms of their contracts and then evaluate their performance.