Managed Care Plans have three basic types of plans. These are:

a. Preferred Provider Organizations (PPOs)

A PPO is a managed care plan that shares some features with the Traditional Indemnity plan. In PPO, there are higher and lower charges depending on the person’s choices of doctor and hospital. A higher coinsurance is charged to people who choose doctors and hospitals that are not part of the plan’s network. A lower coinsurance is charged to those who choose from the plan’s network of doctors and hospitals.

b. Health Maintenance Organizations (HMOs)

An HMO is the least expensive health plan. Using an HMO limits your options to the company’s terms and offers. Compared to PPO, HMO does not let you pick a doctor or hospital outside its network. In using an HMO you also have to secure your doctor’s referal before you could go to a specialist. HMO is cheap and it allows you to acquire preventive and health improvement care.

c. Point-of-Service (POS)

A POS gives you a specific list of doctors and you will have to choose your Primary Care Physician. With POS, you have the freedom to choose your hospital, facilities and doctors although choosing from among the network is encouraged. However, choosing outside facilities will cost you more than when you get your services from the approved list of doctors and facilities of your POS company. In POS, you’ll be encouraged to have preventive and health improvement programs.