What Are The Advantages And Disadvantages Of Managed Health Care

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Managed health care is the leading form of health care in the United States. The most common forms of managed care providers are Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPO’s). The main advantage of managed health care is the lower costs associated with them. The goal of managed care is to keep health care costs down without sacrificing quality. Consumer-driven healthcare plans are beginning to emerge and grow across the country (Weaver, 2010). Consumer-directed healthcare plans are popular for employers because more of the decision making and risks fall on the employees. Therefore, reducing the amount of money the employer spends on healthcare. Criticism/drawbacks of Managed Care: One major criticism …show more content…

The plan typically determines if a doctor is qualified before the doctor joins the managed care network. This gives the patients peace of mind knowing that they are in good hands. Additionally, in a managed care plan, physicians and specialists are connected with the insurance provider’s network. Therefore, making it easier for a patient to locate a particular type of physician when needed. In a consumer driven plan, doctors are able to price and package their services, competing for patients based on price and quality. Patients are able to take a more active role in selecting their health care …show more content…

The goal of managed care is to keep health care costs down without sacrificing quality. This is accomplished by contracting health care providers and referring them to the enrolled members. Providers are paid a fixed amount for each person (member) enrolled in the plan. Whether the member never sees the doctor or sees the physician numerous times, the provider does not get any more money than the agreed upon amount. The fixed amount is usually paid by the employer or Medicare. Some plans also have members pay a small co-payment for each visit. Typically, the co-pay is low with no deductible. Prices for prescriptions are also low as the managed care plans can take greater advantage of bulk

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