Managed Care

The term managed care refers to a health care delivery system or health insurance plan designed to organize and pay for health care services. Typically, managed care organizations (MCOs) seek to reduce costs and improve the quality of health care services. Most managed care systems include a network of health care providers and a managed care overseer that monitors the quality and cost-effectiveness of services. Both private insurance companies and government-funded health insurance programs, such as Medicare and Medicaid, use managed care plans.

A number of legislative regulations have affected the health care delivery system within the United States. Since the enactment of the Health Maintenance Organization Act of 1973, managed care has been the prevailing system of health care delivery in the United States. However, ...