How does a "managed care" plan function?

A managed care plan is designed to provide coordinated healthcare services while controlling costs and improving efficiency. The key feature of this type of plan is its requirement for members to use a network of designated healthcare providers. These providers are contracted with the managed care organization to offer services at negotiated rates, which helps keep healthcare costs down for both the provider and the member.

Coordination of care is also a critical component of managed care. By utilizing a network, managed care plans can ensure that members receive appropriate care, preventive services, and follow-up treatments which can lead to better health outcomes. This model contrasts with more traditional fee-for-service healthcare plans where patients have the freedom to see any provider, potentially leading to higher costs and less coordination of care.

Overall, the managed care structure aims to balance access to healthcare services with cost containment by promoting the use of a specific network of providers, thereby fostering a more organized approach to patient care and healthcare expenditures.