A Managed Care plan involves a group of doctors,
hospitals, and other health care providers who have agreed to provide
care to Medicare beneficiaries in exchange for a fixed amount of
money from Medicare every month. Managed Care plans include Health
Maintenance Organizations (HMOs), HMOs with a Point of Service (POS)
option, Provider Sponsored Organizations (PSOs), Preferred Provider
Organizations (PPOs), and Cost Plans.
There are two main advantages associated with managed
care plans. The first is low premiums. The second advantage is many
managed care plans offer additional benefits not covered under the
Original Medicare plan.