A Medicaid managed care plan is a health insurance program offered by managed care organizations (MCOs), which have contracted arrangements with state Medicaid agencies to deliver Medicaid health benefits and additional services to enrollees. These MCOs accept a set per member per month (capitation) payment for these services.
The main objective of a Medicaid manage care plan is to improve quality of care. Contracting with MCOs allows states to reduce Medicaid program costs and better manage utilization of health services.
Read more about Medicaid Managed Care:
Managed Care – Medicaid.gov
Benefits and Challenges of Medicaid Managed Care – Forbes.com