Which of the Following Statements Describes Managed Care Organizations

question 25

Multiple Choice

Which of the following statements describes managed care organizations?

• A) They actively recruit vulnerable populations.
• B) Payment for services is integrated with delivery of services.
• C) Reimbursement is usually based on fee-for-service.
• D) Hospitals are the preferred setting for service delivery.

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Definitions:

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Externalities

Costs or benefits that affect parties who did not choose to incur that cost or benefit, often leading to market failure if unaddressed.

Moral Hazard

A situation in which one party engages in risky behavior or lacks incentive to guard against risk because another party bears the consequences.

Moral Hazard

The situation in which one party can take risks because they know that they will not have to bear the full consequences of their actions.