Strengths and Weaknesses of the Three Major Types of Managed Care Organizations

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A health maintenance organization (HMO) is a plan anchored on a network of doctors, hospitals, and other healthcare providers who agree to provide healthcare services in a network for a certain pay. The advantages of an HMO plan are that it is budget conscious and perfect for people who do not wish to have many doctor visits. However, one must be within the network to receive healthcare services except for medical emergencies. Another disadvantage is that one has to choose a different primary doctor if the current one is not a part of the HMO's network.
A point of service (POS) plan is appropriate when managing a healthcare condition, but their primary care physicians are not in a network. The disadvantage of the POS plan is one has to get a referral from their primary care physician to see a spe...