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Three questions are asked about Managed Care Organizations (MCOs), Medicare and Medicaid. They all relate to healthcare but they’re different. These are the questions:
- What are Managed Care Organizations (MCO) and what do they offer?
- How is Medicare different from Medicaid?
- What are the advantages and disadvantages of Managed Care Organizations (MCOs), Medicare, and Medicaid
Below is a comparative and contrarian view of each.
- Managed Care Organizations are private health care organizations which provide services such as insurance, management, and healthcare delivery. MCOs are primarily concerned with reducing healthcare costs for their patients while maintaining high quality care. MCOs work together with their patients and healthcare providers to negotiate the best rates. MCOs differ from traditional insurance because they offer more services, and patients are usually required to select a primary provider.
- Medicare and Medicaid both are government funded healthcare programs. Medicare focuses on people 65 years and older, while Medicaid focuses on people who have low income. Medicare, which is funded through payroll taxes, provides coverage to individuals with disabilities, end-stage kidney disease or who are 65 years old and older. Medicaid, which is funded both by the federal government and states, provides coverage to low-income individuals. Medicare and Medicaid differ in the fact that Medicare provides entitlements, while Medicaid has a means test.
- Managed Care Organizations and Medicare provide lower costs of healthcare for patients and increased accessibility to care. They also improve the quality of health care. Some of the drawbacks to these programs are a lack of choice in providers, bureaucracy increases, and a potential decrease in quality. Managed Care Organizations can limit your access to providers and certain treatments. Medicare, Medicaid and other insurance programs may also restrict the type of treatment that is covered.
Summary: The answers to questions about Managed Care Organizations and Medicare are the same. They all concern the healthcare industry. They are however different when it comes to the topics that they cover, and what services they offer. It is important to understand the differences and similarities between these two programs in order to make an informed decision about your healthcare.