Managed Care-Related Service
Delivery Issues
States implementing SCHIP through managed care organizations (MCOs) will need to be
cautious of:
- The impact of the program on safety net providers.
- HMOs’ inexperience with low-income groups; cultural and language barriers.
- Creating inadvertent financial incentives for underservice.
- Adverse selection and accumulation of need among those who have been uninsured for a
significant period of time.
- Inadequate provider capacity. Current provider networks may be not be sufficient to
serve SCHIP enrollees.
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Benefit Design 
