Question

In what ways does managed care manage costs? Is care compromised in the process?

Answer 1

In the managed-care model, the patient gets paid within the plan or partially paid by the insurance company and the remaining has been paid by the patient. Managed care has incentives to reduce health care cost. It is a benefit when treatment is taken from the primary care physician. Managed care reduces the health care cost in emergency cases and serious illness, but it doesn't benefit the insurer during preventive services. For routine check-ups, the patients have to pay from their pocket. The managed care has broader coverage for hospitalization visit but it limits to access of services to patients. So managed care benefits the patient during disease and illness but it does not compromise the cost in wellness perspective.