How are services to Managed Care Organization (MCO) recipients included in the data sets?
Managed Care Organizations (MCOs) receive capitation payments, paid ‘per member per month (PMPM),’ irrespective of what services have been provided that month. (This differs from Fee for Service claims, which are paid based on each service rendered.) Recipients who were enrolled with MCO will have the services they received from the MCO represented as ‘encounter claims.’ These provide proof of the provision of services rather than requests for payment, and do not further detail the Type of Service provided.
Some Types of Service are excluded from MCO services, however. These include services from dentists, pharmacists, optometrists, mental health clinics (via community behavioral health providers), substance use disorder rehabilitation service providers, vision testing providers, Nursing Facilities, Intermediate Care Facilities for the Mentally Retarded/Developmentally Disabled, Early and Periodic Screening, Diagnostic and Treatment (EPSDT) service providers, and school-based clinics. Specific restrictions apply to the provision of abortion, sterilization, and hysterectomy.
Services excluded from MCO coverage are represented elsewhere in the data sets. For example, a recipient enrolled in MCO who gets dental care from another Medicaid-affiliated provider will have this service recorded as a distinct Type of Service, irrespective of their MCO encounter claims data.
Additional Types of Service excluded from MCO payments are also excluded from other Medicaid programs found in the data sets. These Types of Service are those services funded by the Juvenile Rehabilitation Services Medicaid Matching Fund; experimental or investigational services; non-authorized services from an unaffiliated provider; services delivered without an appropriate referral or prior authorization; and medical and surgical services for cosmetic purposes. As these are not represented in our data sets, they are therefore not associated with costs or any other values in the data sets.
Recipients who enrolled in an MCO at some point in the experience period will have the services they received prior to their MCO enrollment recorded in the data sets as various Types of Service. The premiums paid to MCOs will be listed under The Type of Service ‘Health Insurance Payments: MCOs.’