More often than not clients will ask the question: What is an MCO? Well isn’t that a loaded question? If we take it at face value, a Managed Care Organization (MCO) is an organization that manages care. Like Coventry, who manages all types of “care” injured workers seek to get on the road to recovery. However, usually the question has more to do with State Certified Managed Care Programs, commonly referred to as MCOs. From there it gets clear as mud. While the general category of state certified programs may be commonly referred to as MCOs, when you get into the state specifics you won’t find it to be that easy. For instance, California refers to their program as the Medical Provider Network (MPN), Texas is the Health Care Network (HCN), and Florida is the Managed Care Arrangement (MCA), just to name a few. Some states simply refer to it as their MCO. There are more than 21 states that have enacted MCO legislation. Typically the enticement for using these programs is the ability to direct injured workers to certified network providers and achieve PPO savings. Such direction is usually defined for a specified period, some for the lifetime of the claim, and this direction and savings in some cases is not available outside the MCO. In some states the MCO will be voluntary and in others mandatory for certain groups. Organizations that offer MCO programs to payers act as the facilitators for these complex systems bridging the gap between state regulators, payers and injured workers. Some will offer networks only and others will offer fully bundled programs that include the utilization review required to determine medical necessity, case management for care coordination, quality improvement initiatives and reporting to monitor compliance in order to entice usage and demonstrate success of the MCO in the overall claim management process. Some will do the MCO filing with the legislative bodies and others will provide you with the documentation to do the filing yourself – often times this differs depending on who is stringing the MCO program together as a complete program. So if you thought this piece was going to simplify the world of certified managed care organizations, I apologize for leading you astray. The most important bit of advice I can provide is to do your homework. If you have the manpower to dig into and understand the details in all the states where you operate you may just need a certified network. If you prefer to let someone else do the driving, partner with a company that has the know-how and the resources to build, maintain and operate network only and fully bundled programs and do all the necessary heavy lifting to get it approved well before you need to go live.
More stories
Workers Comp Insurers Face Disruptive Market Shifts After a Decade of Strong Profits: Report
Workers’ comp insurers may face growing pressure from healthcare inflation, Medicaid cuts, workforce shifts and rising claim complexity. Read how Enlyte experts analyze the trends that could reshape claim costs and profitability in the years ahead.
Specialty Solutions Spotlight: How Adjusters Can Keep Rural Workers’ Comp Claims Moving
Workers’ compensation claims can slow quickly when an injured employee doesn’t have access to nearby specialty providers. In rural areas, a routine referral for imaging, physical therapy, durable medical equipment or home health can become a claim delay when distance, limited provider availability or several services have to be scheduled at once.
Heat exposure complicates causation in workers comp claims
As heat-related risks grow, determining causation in workers' compensation claims is becoming more complex. Read this Business Insurance article featuring Enlyte's Tammy Bradley on the challenges heat exposure creates for claims investigations and compensability decisions.
Ask The Pharmacist: 5 Medication-Related Fraud Signs Work Comp Adjusters Should Know
Pharmacy fraud represents one of the fastest-growing cost drivers in workers’ compensation claims. While most health care providers operate with integrity, fraudulent prescribing patterns can inflate claim costs by thousands of dollars, sometimes without adjusters noticing until significant damage has occurred.
Medical severity, care access top comp trends: report
What trends will have the biggest impact on workers' compensation in 2026? Read Business Insurance's coverage of Enlyte's 2026 Envision Trends Report and discover why medical severity and care access are top concerns.
Report Explores Forces Driving Claim Complexity
Learn how emerging claim complexity, medical severity and changing treatment patterns are shaping the future of workers' compensation. Read the latest Claims Journal coverage of Enlyte's 2026 Envision Trends Report.