18.4 Managed Care
Managed Care Organizations (MCOs) include Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Exclusive Provider Organizations (EPOs) that we have previously learned about. Containing medical costs is of primary concern without lowering the quality of care recipients receive. These organizations have devised many techniques to make headway in accomplishing their goals.
Policy Design
The actual way in which the policy is laid out can have a big impact on costs. For instance, you already know that the higher the deductible, the lower the premium cost, and also the lower the overall cost to the insurer. More generous benefits will cost both the insured and the insurer more. Lessening benefit periods will lower the insurer's cost.
Let's look at some other ways in which medical costs can be contained somewhat.
