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
The Aging Workforce
Aging workforce strategies for workers’ comp help employers manage claim severity, injury prevention and return-to-work planning. Learn key risks.
Retail and Mail Order Prescriptions
Overall cost and utilization by claim were down in 2025 even with 6 of the top 10 therapeutic classes experiencing rising cost per script. Migraine medications rose by nearly 10%, representing the largest script cost gains driven in part by increases in brand Average Wholesale Price (AWP) including brand AWP for migraine medications increasing 2.4%. Utilization per claim also jumped in the migraine medication class (up 9.6%), while every other class within the top 10 (besides topicals, which rose 2.5%) experienced decreased utilization.
Plugged-In: EV Collision Insights Q1 2026
The U.S. share of repairable collision claims involving battery electric vehicles (BEVs) held steady at 3.33% in Q1 2026, unchanged from Q4 2025. Although sales of new BEVs grew modestly quarter over quarter, they remain 28% lower year over year. Several OEMs have scaled back production following increases in import tariffs and the expiration of federal tax incentives. Despite this near-term slowdown, BEVs are projected to reach approximately 29% of new vehicle sales and just over 10% of vehicles in operation by 2035, driving a steady increase in collision exposure.
Hybrid Vehicle Collision Claims Hit Record High in First Quarter as BEV Claims Level Off
Mitchell today released its Q1 2026 Plugged-In: EV Collision Insights report. The company’s latest publication reveals a shift in electric vehicle claim trends that is introducing new challenges for insurers and repairers related to risk exposure, cycle time and repair complexity.
PTSD Presumption Claims are Rising. Workers’ Comp Needs a Stronger Clinical Response
PTSD presumption claims are rising. Learn how case management supports behavioral health care, treatment follow-through and return-to-work planning in workers’ comp.
Protect Your Program from Unnecessary Risk: Why Provider Agreements Matter More Than Ever
Discover how contracted provider networks help workers’ compensation payers reduce risk, improve claim outcomes, and deliver more sustainable savings.