Managed Care Vs Traditional Insurance
By Iris Miranda|
University of Phoenix
January 23, 2011
Presently in the United States there are several different health care plans and the decision to accept Managed Health care plans become difficult. Managed care is the most utilized form of health insurance in the United States for it provides cost that is efficient versus paying for services rendered in one lump sum. However like everything in life, there are pros and cons to consider when it comes to managed care versus traditional insurance.
What is Managed care? Managed care is a health care system which provides a person with the ability to pay an organization a set fee on a monthly basis to receive health services, and the organization will provide you a list of physicians to choose from. Which for many of us that are employed and chose to participate with the employers’ health benefit care plan are aware that they will have a set fee deducted from their paycheck weekly or bi-weekly on a monthly basis. Managed care dates back to the 1900’s when the financial crisis surrounding health care was so high that it opened the door for managed care. By the late 1960’s there were many Americans uninsured due to the high costs of insurance. Now, when manage care was introduced it was the best plan anyone could come up with for the pros of having this type of benefit is that it was designed to make health care more affordable, it also provides low out of pocket expense which makes treatment plans easily accepted. (The McGraw Hill Company, 2004).
Managed Care versus traditional insurance from the perspective of a consumer is something we need to explore. Traditional insurance, as back in the day it provided a fee for services rendered or indemnity coverage. This type of coverage gave one the freedom to choose any physician they wanted to...