To control costs, managed care organizations (MCOs) typically

Question

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Managed care organizations typically encourage doctors to prescribe only drugs that are on their list of approved medications (formulary) in order to control drug costs (A). MCOs also often require pre-authorization before a patient can be admitted to a hospital in order to avoid unnecessary hospital stays and control costs (B). While some MCOs may require doctors to work on a salary, rather than fee-for-service, this practice is not universal and does not apply to all MCOs (C). Therefore, options A and B are the best answers as they are generally practiced by MCOs to control costs.

To Control Costs, Managed Care Organizations (MCOs) Typically