Managed care is the most prevalent form of health insurance plan that has significantly changed the ways that patients receive care and allowing them a variety of affordable care. Under managed care, health insurance plans have a contract with providers and hospitals to provide care for clients at lower cost. Clients who choose to enroll in a managed care plan should also be aware of both the benefits and the drawbacks of those care plans.
Criticism/drawbacks
Managed care health insurance plans, mostly the HMO 's, focus primarily on prevention, and people with these types of policies pay less for their coverage. The newest options in health insurance plans include the PPO (preferred provider organization) plans. Due to their flexibility, …show more content…
An example of a CDHP is the health savings account (HSA) which is linked with a high-deductible health care plan. The purpose of the HSA is used specifically for eligible health-related costs and expenses that are not covered by the individual’s current health plan. The monthly premiums are generally lower than the traditional health plan premiums, thus leaving the consumers with better control regarding their health care spending. The high deductibles and out-of-pocket expenses give patients the incentives to become more educated regarding the cost and quality of care before spending. The CDHP structures motivates consumers to take an active role by selecting their choice of health care providers, managing health expenses and improving overall health through good nutrition, exercise and other health factors that the person can control (General Board Pension and Health Benefits, n.d.). The benefit of having a CDHP is that most preventative medical services are covered 100% and no out of pocket expense is required. Another benefit of having a HSA, is that at the end of the year, if there are left over funds, then it can rollover to the next …show more content…
Managed care plans has become one of the most popular form of health insurance coverage. Under this plan, a small co-payment fee is required and the primary care provider is set. Consumer Driven Health Plan (CDHP) allows patients to use a HSA, Health Reimbursement Account (HRAs), or similar to pay for expenses not covered and can be rolled over if not used. Benefits of CDHP is that consumers are allowed to choose any provider and preventative health services are free. Based on the personal needs, each person can utilize the different care plans
Criticism/drawbacks
Managed care health insurance plans, mostly the HMO 's, focus primarily on prevention, and people with these types of policies pay less for their coverage. The newest options in health insurance plans include the PPO (preferred provider organization) plans. Due to their flexibility, …show more content…
An example of a CDHP is the health savings account (HSA) which is linked with a high-deductible health care plan. The purpose of the HSA is used specifically for eligible health-related costs and expenses that are not covered by the individual’s current health plan. The monthly premiums are generally lower than the traditional health plan premiums, thus leaving the consumers with better control regarding their health care spending. The high deductibles and out-of-pocket expenses give patients the incentives to become more educated regarding the cost and quality of care before spending. The CDHP structures motivates consumers to take an active role by selecting their choice of health care providers, managing health expenses and improving overall health through good nutrition, exercise and other health factors that the person can control (General Board Pension and Health Benefits, n.d.). The benefit of having a CDHP is that most preventative medical services are covered 100% and no out of pocket expense is required. Another benefit of having a HSA, is that at the end of the year, if there are left over funds, then it can rollover to the next …show more content…
Managed care plans has become one of the most popular form of health insurance coverage. Under this plan, a small co-payment fee is required and the primary care provider is set. Consumer Driven Health Plan (CDHP) allows patients to use a HSA, Health Reimbursement Account (HRAs), or similar to pay for expenses not covered and can be rolled over if not used. Benefits of CDHP is that consumers are allowed to choose any provider and preventative health services are free. Based on the personal needs, each person can utilize the different care plans