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Advantages to Managed Care Plans

August 26, 2008

Advantages to Managed Care Plans

The quality of health plans varies widely. In 1997, a study published by the National Committee for Quality Assurance (NCQA) showed differences in the ways managed care organizations provide access to care, keep people healthy, treat illness, deliver high-quality service, and satisfy patients

There are lot of different types of Health insurance policies out there. Chosing the right one for yourself can be difficult in the beginning, especially if you don’t know what you are searching for. You could have trouble choosing which one would be best for you.

Health insurance policy is split into two big categories-indemnity and managed care policies. Indemnity policies, also commonly called reimbursement policies, will reimburse your medical expenses up to a certain limit. Under the Reimbursement plan, the insurer bears a percentage of the total bills, irrespective of how much the charges are. With the indemnity policy, the insurer will bear a specified sum of money every day for a specified number of days. The sum of money reimbursed does not rely on the price of medical care, but what you are reimbursed will never go past your expenses.

The other best-selling type of health insurance policy is managed care policy. The three types of policies classified as managed care policies are HMOs, POSs, and PPOs. This type of policy is a lot popular than the indemnity policy, as they offer more flexibility. With these types of alternatives you either pay a monthly fee no matter how many times you see a physician, or pay a co-payment but no monthly fee. With managed care plans, you are given choices of care. The policy you choose and the sum of money you wish to pay decides how big of a network of physicians and medical specialist* you can consider and still be covered under the plan. Some managed car policy (most often PPOs) offer sponsorship programs from a network of hospitals and medical services. You can often get this kind of policy through your employer.

Managed healthcare policies are better for the average person due to the fact that they are more cost effective. While indemnity policies may give you a lot more freedom in cost, you will have to use the healthcare provider that the insurance company prefers. If you have a specific disability, this can present itself as a trouble. In the long run, a managed care policy will save you money, particularly if emergencies arise when you are away from town. These types of plans also are more flexible. Before you buy any kind of health insurance policy, be sure to research the many alternatives available for you and your family to ensure you get the best insurance coverage possible for the lowest monthly insurance premium or allowable.

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