How Does Managed Care Attempt to Control Costs of Care

question 2

Multiple Choice

How does managed care attempt to control costs of care?

• A) By encouraging families to use the point of service list of individual practice associates
• B) By requiring families to choose a care provider from the MC network and not allowing access to other services without their provider's permission
• C) By moving Medicaid-eligible families onto state Medicare enrollment
• D) By refusing permission for families to use urgent care or emergency department services

---

Definitions:

Bonds Payable

Long-term liabilities on a company's balance sheet, representing money owed to bondholders that must be repaid at a future date.

Bond Redemption

Bond redemption is the process of repaying the principal amount of a bond at or before its maturity date by the issuer.

Carrying Value

Also known as book value, it is the value of an asset as shown on the balance sheet, calculated as the original cost minus accumulated depreciation.

Premium on Bonds Payable

The additional amount over the face value for which bonds are sold, reflecting the market's perception of lower risk or higher interest compared to the market rate.