In an effort to modernize Medicare insurance, the Federal government has allowed private insurers who meet strict requirements to sell private insurance to the elderly, as a substitute for 'traditional' Medicare insurance. There are many forms of private insurance now being sold to the elderly, including some managed care plan types. Managed care plans restrict the choice of physicians and hospitals to include a set selected by the insurance plan, over whom the plan has more control in terms of utilization and expenditures. Managed care plans also provide preventive care and disease management services to their constituents, to keep them healthier and reduce their expenditures. Managed care plans are paid a set.
