Learn About Traditional & Managed Care Health Insurance in Virginia

When selecting or purchasing health care coverage, it is important to understand the difference between traditional health insurance and managed care health insurance plans, (called "Managed Care" or "MCHIPs" in Virginia).

Traditional Insurance plans generally allow you to go to the provider, (physician, hospital, etc.), of your choosing, but require that you pay for the services and file (or allow your physician or provider to file) claims for reimbursement. Managed Care Health Insurance Plans use networks of selected doctors and other providers to provide health services. In return for using the network of providers, or "staying within the network" you typically pay less for medical care than you would with traditional health insurance.

Traditional health insurance and Managed Care plans provide protection through many types of policies and plans, and at many prices. Some policies or plans pay most of your healthcare bills or provide most healthcare services for illness or injury. Others will cover only certain illnesses or injuries. Some pay an amount directly related to your health care costs. Others pay a set amount for each day that you are in the hospital, without regard to your actual bills. Some plans restrict care to certain providers and require that a primary care provider (a PCP) manage all care.