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3 years ago

What is the difference between private insurance and managed care

2 answers:

8 0

Private insurance is an insurance protection provided by non-governmental sources such as private insurance companies.
Managed care is a type of private medical insurance in which patients agree to visit only certain doctors and hospitals, and in which the cost of treatment is monitored by a managing company. Certain health care providers and facilities, are part of the plan's network.
The difference is that in non managed private insurance the patient can choose in which hospital he will go and in managed insurance there are only several hospitals in which he can go.

Alika [10]3 years ago

6 0

Insurance in general means of protection against certain loss.

A private insurance is the type of insurance that is not managed or run either by the state or federal government. It is basically an insurance protection that is offered by private insurer such health, dental etc. it has nothing to do with government benefit, just like in the case of children health insurance programme or Medicaid. However, an individual can buy private insurance directly from different sources, which could be from an employer or a marketplace.

Managed care also known as managed healthcare, is used to describe activities that are geared towards reduction in cost of providing health care without affecting the quality. The essence of managed care is to reduce cost and make healthcare more affordable to the people.

There are three types of managed care plans which include

Health maintenance organization (HMO) pays for health care services offered to people within a specified network. An individual select a doctor who take care of his/her health.

Preferred provider organization (PPO) pays more for healthcare provided within a specified network, though they also pay part of the healthcare services seek outside the network.

Point of Service (POS) plans allow individual to choose between HMO and PPO when in need of healthcare services.

However, The different between Private insurance and managed care is that, private insurance are insurance that can be purchased from private companies while managed care is lowering the cost of health insurance.

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