Managed Care Plans

Understanding Health Insurance

Managed care plans provide comprehensive health services to their members and offer financial incentives for the patients to use the providers that are under contract with their plan.

Since the passage of the Health Maintenance Organization Act by the federal government in the late 1970's, the popularity of HMOs has increased tremendously.

HMOs provide limited out-of-pocket expenses for medical care as long as you use the doctors or hospitals that participate or are part of the HMO. Generally with HMOs you do not need to pay deductibles or co-insurance.

What are Preferred Provider Organizations and point-of-service plans?

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