Which Type of Managed Care Plan Allows the Most Flexibility

question 6

Multiple Choice

Which type of managed care plan allows the most flexibility in choosing health services and providers?

• A) Health maintenance organization (HMO)
• B) Independent practice organization (IPO)
• C) Preferred provider organization (PPO)
• D) Point of service plan (POS)

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Definitions:

Oligopolist

A company operating within an oligopoly market structure, where a small number of firms have a large majority of market share and can influence prices and competition.

Non-price Competition

A strategy by businesses to attract customers through methods other than lowering prices, such as quality improvement, marketing, or product differentiation.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry.

Market Share

The portion of a market controlled by a particular company or product.