ABA Family Legal Guide

Health-Care Law

Health-Care Options

Health Insurance and Managed Care Organizations

Are there alternatives to traditional health insurance?

Yes. In an effort to control health-care costs, new forms of health insurance and health service plans have developed that have resulted in lower premiums. The lower premiums generally are achieved through a reduction in choice of health-care providers, a reduction in the type and the amount of benefits available, stricter controls on the type and the amount of care given by providers, and/or negotiated reduction of compensation to health-care providers. There are several types of these organizations, which are called managed care organizations (MCOs).