Managed care organizations have become the center of the healthcare system in the U.S. According to the text, one of the first instances of Managed care was started in early 1900’s the era of constructing railroads and mining coal (Shi & Singh 2017). It started to take shape and increase in 1990’s. Many employers use Managed Care because they assume risk and the employers do not have to stress about the quality of the insurance companies they provide. As many articles and even our text describe, Managed care as the third party they make sure the insured are being taken care of and that they do not have to put in more than they have to. Managed care has its benefits and its cons, some people prefer it and some people do not. Managed care is in …show more content…
There are three different types of Managed Care plans which are Health Maintenance Organization (HMO), Prefered Provider Organization (PPO), and Point-of-Service (POS). They all have differing factors from each other. Managed care has its pros and its cons. The biggest reason people choose Managed care is the affordability. It is the factor that benefits both the employers and the employees. Many companies choose MCOs for the fact that they assume risk when it comes to health care insurance, the employers do not have to stress because MCOs take care of choosing the right networks of health care insurances (Coxe 2017). In this article by Brenda Coxe, she briefly explains the pros and cons of MCOs; something that stuck out to me was that they evaluate each insurance company before they add them to their network. MCOs make sure that each insurance company would work for well for their providers. There are some disadvantages to Managed care, that the article called Benefits & Disadvantages of Managed Health Care , mentions that the insured have concerns when they switch employers and their health care environment