Managed Care

A health care system that attempts to enhance medical care quality and cost-effectiveness using an organized group of doctors, hospitals, and other health providers.

Managed-care plans offer comprehensive care to policyholders by making arrangements between employers or insurers and select providers to provide care at a discount and coordinate medical financing to group members. Each managed care plan has its own provisions, controls the delivery of its own health care, and manages payment and organization on behalf of its members.

Using what’s known as medical practice guidelines, managed care incorporates certain procedures agreed to be the most cost-effective by those in the health care profession. Some types of managed care include point of service (POS) plans, preferred provider organizations (PPO), and health savings (HSA) accounts.


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