Managed care is a term that is becoming quite commonplace in health-care circles.

Essentially this term covers several types of care including the health maintenance organization, or HMO, and the preferred provider organization also known as PPO. The basic principle behind managed care is the introduction of your insurance company into the health-care mix. Essentially your insurance company becomes actively involved in negotiating fees for medical services and it also sets guidelines for treatment. The purpose of this type of care is to manage the ever-increasing costs of health care. By reducing unnecessary surgeries and treatments, the insurance companies are able to save the consumer a great deal of money. This information is general in nature and should not substitute for the advice of an expert in the field.