1. Generic term applied to managed care plans such as exclusive provider organizations (EPOs), health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point-of-service (POS) plans. MCOs are usually prepaid group plans and physicians are typically paid by the capitation method. Also referred to as managed health care plan . 2. MCOs are entities that serve Medicare or Medicaid beneficiaries on a risk basis through a network of employed or affiliated providers. In the Medicaid program, other organizations may set up managed care programs to respond to Medicaid managed care. These organizations include federally qualified health centers, integrated delivery systems, and public health clinics.