What is managed care?

Managed care refers to a system of healthcare delivery that aims to provide quality care at reduced costs through a coordinated approach. The correct choice highlights prepaid health plans that offer comprehensive healthcare services, meaning that members pay a fixed amount ahead of time, allowing them to access a range of medical services provided by an organized network of healthcare providers.

This model often includes features designed to manage costs and ensure care quality, such as emphasizing preventive care, requiring referrals for specialists, and incentivizing providers to maintain health outcomes. By offering a comprehensive suite of healthcare services under a prepaid plan, managed care organizations strive to minimize out-of-pocket expenses for patients while controlling overall healthcare spending.

In contrast, the other options depict alternative types of health insurance or healthcare delivery models. High out-of-pocket costs typically characterize plans that aren't managed care, fee-for-service plans charge separately for each individual service, and a system of unrelated healthcare providers does not align with the coordinated nature of managed care, which focuses on collaboration and integration among healthcare providers for a more streamlined experience.