What is a "managed care" plan in health insurance?

A "managed care" plan in health insurance refers to a system designed to manage the cost and quality of health care services. These plans coordinate a range of medical services in order to maintain efficient healthcare delivery while also containing costs. They typically involve a network of healthcare providers with whom the insurance company has agreements, promoting preventive care and regular check-ups to ensure that patients receive appropriate medical care without unnecessary procedures or tests.

The focus of managed care is not just on treatment, but also on improving the overall quality of care that patients receive. By requiring pre-authorization for certain services and managing referrals to specialists, managed care plans can keep the healthcare process organized and focused on patient care. This ultimately benefits both the insurance company in terms of cost management and the patients by providing structured guidance through their healthcare needs.

The other options do not accurately represent the nature of managed care plans. Policies covering dental and vision care address specific types of services but do not encompass the broader coordination of healthcare that managed care emphasizes. Life insurance policies are unrelated to health care services. Lastly, a plan that offers unlimited medical services contradicts the very purpose of managed care, which is to control costs through managed delivery of care rather than providing unrestricted access to services.