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Structure of Health Insurance

The present health care system relies on public and private health insurance systems. On the basis of your understanding of the health insurance system, answer the following questions:

• Explain the basic structure of health insurance and analyze its most important part. Describe the main purpose of health insurance in your own words.
• What impact do you think health insurance has on our economy today?
• Explain why managed care was incorporated in the US health care system long ago? Describe and contrast the three types of managed care plans—HMOs, PPOs, and POS?.
• Should the same individuals who pay for your health care (managed care organizations [MCOs]) also make your treatment decisions? Why or why not?
• Is the fee-for-service (FFS) system more beneficial for the consumer than the current MCO system? Why or why not? Explain.

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