There are so many types of health insurance to choose from, it’s no wonder people often feel helpless about it.
At InusranceUSA.com we provide you with thorough and up-to-date information on all types of health insurance.
Typically, health insurance can be divided into two overarching categories: traditional and managed care. These can further be broken down into four basic plan types:
- Traditional indemnity health insurance; now often called Fee-for-Service (FFS) plans.
- Preferred Provider Organization or PPO
- Point-of-Service or POS
- Health Maintenance Organization HMO
Managed Care Health Insurance
Managed care health insurance is a term typically used to describe a variety of health insurance policies designed with the intent of lowering cost while increasing quality of care.
In the United States, managed care health insurance owes its beginning to the Nixon administration who sought to change the old not-for-profit healthcare system to a for-profit insurance driven industry. With the passage of the Health Maintenance Organization Act in 1973 began the first Health Maintenance Organizations or HMOs that we now see today.
In addition to HMOs, we now can find managed care solutions in the form of Independent Practice Associations (IPA), Preferred Provider Organizations (PPO), as well as Post of Service (POS) plans.
Many critics of managed care health insurance cite that they limit the time doctors spend with patients, make it harder to see specialists, and fail to produce real healthcare savings. Such criticism has often compelled many states to pass laws governing managed care standard.
In addition, many insurers now provide many more plan options and comprehensive care networks. Today, in the US, healthcare options are almost exclusively managed care health insurance.