Originally used to describe a prepaid health plan (such as a Health Maintenance Organization), a managed care plan offers health care through a network of providers under a fixed budget to control and manage costs.
Today, a managed care plan is also used in describing a Preferred Provider Organization (PPO) or Exclusive Provider Organization (EPO) plan.
All three plan types (HMOs, PPOs, and EPOs) include provider networks, provider oversight, prescription drug tiers, and other features.
HMO and EPO plans typically require you to have a Primary Care Provider (PCP), who coordinates your care and refers to specialists. PPOs and some EPOs may allow you to self-refer to specialists that are part of your health plan’s provider network.