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Managed care plans are a type of health insurance. They contract with health care providers and medical facilities to care for members at reduced cost. Those providers make up the plan's network, and the network's rules decide how much of your care the plan pays for.
Plans that limit your choices usually cost you less; a flexible plan will probably cost more. There are three types:
| Plan | How it works |
|---|---|
| Health maintenance organization (HMO) | Usually pays only for care within the network. You choose a primary care doctor, who coordinates most of your care. |
| Preferred provider organization (PPO) | Usually pays more for care within the network, but still pays part of the cost outside it. |
| Point of service (POS) | Lets you choose between an HMO and a PPO each time you need care. |
Sources
- MedlinePlus, U.S. National Library of Medicine, "Managed Care." https://medlineplus.gov/managedcare.html
- Rewritten in hubnx's own words.
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Licens: CC0 1.0 (offentligt eje) · Bearbejdet efter medlineplus.gov
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