The development of MCOs has been influenced by the type of market they serve. For example, BCBS companies moved from primarily a service plan provider to a multiproduct line that includes HMO, PPO, and consumer choice plans. In addition, various types of managed care organizations have emerged due to forces imposed by the state and the federal governments, such as the HMO Act of 1973. Answer the following questions keeping in mind the above information:

Examine how public policy has impacted the growth of managed care.

Evaluate the impact of one federal and one state-level policy.

Compare and contrast the ways the policy caused the managed care market to grow or retract.