Although MCOs are responsible for contracting with providers to deliver services to their members, MCOs have various...

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General Management

Although MCOs are responsiblefor contracting with providers to deliver services to theirmembers, MCOs have various networks they offer to their employergroup customers to achieve different goals, like local/nationalnetworks, cost control, limited/expansive access... There are costsassociated with each of these options, whether a higher or lowercost. If you are working for an employer in making the health carepurchasing decisions:

  • What options do employers have forcompensating providers?
  • What role does reinsurance play inprovider reimbursement?
  • What limitations exist (e.g., state orfederal laws)?
  • Provide examples to support yourideas.

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1 An employer can compensate providers through fixed compensation stock options or daily compensation Having options favors employers because it allows more than one method of compensation    See Answer
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