Managed Healthcare systems have become a household word for many businesses, government health care programs, and for individuals. Does managed healthcare plans really work for the individual? What do physicians think about managed healthcare systems? Is it a win or lose situation when it comes to the health of individuals? Why is this true? These are questions that should be considered when it comes to accepting managed healthcare plans as benefits. Studies show that many individuals and businesses are concerned about the managed healthcare systems. “Defined contribution or consumer-driven health approaches will shift to employees just the risks and rewards of the managed health system, but also decisions that will determine whether that system can survive” (Kelly 2003). Several studies show that there are serious problems in the managed health care systems. Are the benefits worth the disadvantages? This paper will address the current state of many managed health care systems, describe consumer-driven health plan concepts and look at the pros and cons of managed healthcare systems.