What is a key feature of Managed Care Plans?

A key feature of Managed Care Plans is the limitations on provider networks. Managed Care Plans are designed to control costs by using a network of providers. Members of these plans typically must use a specific set of hospitals, doctors, and specialists that have agreed to deliver care at reduced rates. By limiting the choice of providers, these plans can negotiate lower fees and manage healthcare services more efficiently, which ultimately helps in reducing overall healthcare costs for both the insurance company and the members.

This approach promotes preventive care and typically requires members to receive referrals from a primary care physician to see specialists, which helps manage the care provided and reduces unnecessary services. This structured network system is essential for the operation of managed care models, allowing for coordinated care while maintaining cost-effectiveness.

In contrast, options that suggest unrestricted provider access or higher out-of-pocket costs do not align with the fundamental principles of Managed Care Plans, which focus on cost containment and optimal care delivery through selective provider choices.