What is managed care?

Managed care refers to a healthcare delivery system that aims to manage the cost, utilization, and quality of care provided to patients. It typically involves various strategies and structures, such as provider networks, care coordination, and preventive health measures, designed to ensure that care is both efficient and effective. The primary goal of managed care is to provide high-quality healthcare while controlling expenses, making it an integral part of many health insurance plans.

The emphasis on managing costs and maintaining quality is what distinguishes managed care from other healthcare systems. It encourages providers to focus on the value of care delivered rather than the volume of services rendered. As a result, managed care can lead to better health outcomes for patients while containing costs for insurers and the healthcare system overall.

In contrast, the other options reflect misconceptions about managed care. For instance, an unlimited choice of healthcare providers or a model that supports independent functioning of healthcare providers do not align with the core objectives of managed care, which emphasizes cost containment and coordinated care. Similarly, a type of insurance covering only catastrophic events does not encompass the broader principles or practices of managed care, which often includes preventative and routine care as well.