Which of the Following Is a Characteristic of a Managed

question 45

Multiple Choice

Which of the following is a characteristic of a managed care plan

• A) Focus is on individual services or episodes of illness.
• B) Maximum income is dependent on high volumes of service.
• C) There is little financial incentive for preventive, primary care.
• D) Maximum income for providers is dependent on effective treatment, or low volumes, of service management.

---

Definitions:

Market Index

A statistical measure that indicates the performance of a group of stocks, representing a specific segment of the stock market.

Portfolio Standard Deviation

A statistical measure of the volatility of returns from a portfolio of assets, indicating the degree of investment risk.

Covariances

A measure that indicates the extent to which two variables change together, determining the degree of their correlation.

Expected Return

The weighted average of all possible returns for an investment, with weights being the probabilities of each outcome.