Managed Care Insurance Facts
Managed care health insurance are types of affordable medical insurance that provides excellent care to their members and policyholders. The overall goals of the managed health care system are:
- To provide cost-effective and high-quality health care
- Prioritizing preventive treatments and medicine
- Provide necessary and appropriate medical care
- Selecting physicians based on needs
- Creating a strong network for members
There are three types of managed care health plans a person can choose from, and all are different from each other. They are:
- HMO- Health Maintenance Organizations: Uses a referral system within a contracted network of doctors and hospitals to provide patient care
- PPO- Preferred Provider Organizations: There is a contracted network of doctors and hospitals, but referrals for navigating the system are not required
- POS- Point-of-Service Plans: Features both a service network of providers and the flexibility for members to go see doctors outside the network
The cost for medical insurance provided through a managed care network tends to be less expensive than traditional health insurance because the service network is in place to help manage costs. Since managed care health insurance provides a network of care, it is easier for the insurance companies to estimate and control their overall costs for the medical attention provided to their members.
When choosing a type of managed health care insurance policy, it is important for you to consider some factors so you can make the most educated decision. Some things to consider:
- Plan type: Do you want the freedom of choosing your own doctor or will you be happy choosing a physician from inside a network
- Budget: The three plans all have different premium structures from each other, but some may require additional out-of-pocket costs such as coinsurance responsibilities, copays and deductibles
Managed care insurance is the most popular choice for Americans, and with a little bit of research you’ll be able to find the plan that’s a right fit for your needs.