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Connecticut Cuts Ties with MCOs, Reimburses Providers Directly

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Connecticut Cuts Ties with MCOs, Reimburses Providers Directly

April 10, 2012

In an effort to effectively manage costs and provide patients with services needed, Connecticut"”as of January 1, 2012"”is abandoning use of managed care organizations (MCOs) and is instead reimbursing providers directly.


While the prospect of using managed care plans appeals to states who want to better manage costs, some states"”like Connecticut"”have found that such arrangements actually worsen patient care and do not save the money they promise to. This course of action sets Connecticut apart from other states, which are following a trend of using managed care plans more frequently.


According to the Centers for Medicare & Medicaid Services, more than 70 percent of all Medicaid enrollees are served through MCOs, a sharp increase from just a decade ago.


To read more, see the Stateline article, "Connecticut revisits old-school Medicaid financing," posted on April 9.