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  • Essay / What are the advantages and disadvantages of managed care...

    The goal of managed care is to reduce health care costs without sacrificing quality. This is accomplished by engaging healthcare providers and referring them to registered members. Providers receive a fixed amount for each person (member) enrolled in the plan. Whether the member never sees the doctor or sees the doctor several times, the provider does not receive more money than the agreed upon amount. The fixed amount is usually paid by the employer or Medicare. Some plans also require members to pay a small copayment for each visit. As a general rule, the co-payment is low and without a deductible. Prescription prices are also low as managed care plans can leverage volume more