Managed Care Organizations · Implementation · 6 min read
How can managed care organizations (MCOs) use Rural Health Transformation Program funding?
Medicaid MCOs cover much of the rural population, so RHTP-funded services can reduce member costs and improve quality measures the plan is already accountable for. In practice, managed care organizations (MCOs) can fund member outreach and care management for rural enrollees, value-added prevention and chronic-disease programs, transportation and access supports, and data sharing with state RHTP initiatives. These map most naturally to the evidence-based prevention and chronic-disease management, and additional uses that promote sustainable access categories, and MCOs coordinate with state Medicaid and RHTP agencies, often co-funding or operationalizing programs for shared members.
Where RHTP fits
Medicaid MCOs cover much of the rural population, so RHTP-funded services can reduce member costs and improve quality measures the plan is already accountable for.
Fundable program types
RHTP can support a range of work for managed care organizations (MCOs):
- member outreach and care management for rural enrollees
- value-added prevention and chronic-disease programs
- transportation and access supports
- data sharing with state RHTP initiatives
How to engage with the funding
MCOs coordinate with state Medicaid and RHTP agencies, often co-funding or operationalizing programs for shared members.
Because states apply and are accountable; sub-recipients (providers, plans, vendors) deliver, the practical move is to track your state's solicitations and align your proposal to its plan.
A common pitfall to avoid
Misalignment between RHTP-funded services and the plan's value-based incentives can create duplicate or stranded programs.
Frequently asked questions
- Are managed care organizations (MCOs) eligible for RHTP funding?
- Not directly: states hold the award. managed care organizations (MCOs) participate through state solicitations as sub-recipients or partners.
- Which allowable-use categories fit managed care organizations (MCOs) best?
- The evidence-based prevention and chronic-disease management, and additional uses that promote sustainable access categories are the most natural fit.
Figures reflect the CMS Rural Health Transformation Program NOFO and the December 2025 award announcement. RHTP Tracker is an independent resource by Moodr Health and is not affiliated with CMS.