One Type of Managed Care Plan Has a Network of Preferred

question 27

Multiple Choice

One type of managed care plan has a network of preferred providers.When care is needed,the member has the option to seek care in the network or to go outside the network.If care is received outside the network,the member must pay substantially higher deductibles and coinsurance.This type of managed care plan is a(n)

• A)individual practice association plan.
• B)staff model plan.
• C)point-of-service plan.
• D)network model plan.

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Definitions:

Natural Monopolies

Situations where a single firm can supply a good or service to an entire market at a lower cost than could multiple firms.

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced, incorporating both fixed and variable costs.

Agricultural Products

Goods derived from farming and agriculture, including crops and livestock.

Monopolist

An individual or company that holds exclusive control over the supply or trade of a particular good or service, allowing them to influence prices and market conditions.