Review the lecture (see attached). The term “managed care” refers to several different forms of healthcare provision intended to ensure quality care for people in America at lower costs. In 1973, the Health Maintenance Organization Act was signed by President Nixon and funding for HMO expansion was provided to employers willing to provide health insurance for employees. HMOs were the first true form of managed care. MCOs have gone through many changes over the years, some of which have been beneficial and others that have not been successful. After a thorough research of credible sources from the Internet, please answer the following questions: 1.) What is the purpose of an MCO? 2.) What are the major differences between MCOs, Health Managed Organizations (HMOs), Preferred Provider Organizations (PPOs), and Exclusive Provider Organizations (EPOs)? 3.) MCOs provide monetary incentives to physicians who keep the costs of caring for patients as low as possible. Do you feel it is ethical? Why or why not?
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