What is the Managed Care Continuum?

• A. PPO → HMO → Indemnity → POS
• B. POS → HMO → PPO → Indemnity
• C. Indemnity → PPO → POS → HMO (increasing management)
• D. HMO → POS → PPO → Indemnity

Answer: (C)

The idea being tested is how the level of care management and cost control rises across different health plan types. Indemnity plans offer the most freedom with fee-for-service reimbursement and minimal gatekeeping, so they sit at the low end of management. A PPO adds network discounts and some utilization management, but you can still see providers outside the network (though at higher costs), making it more managed than indemnity. A POS blends HMO and PPO features with more gatekeeping and referrals, increasing management further. HMO plans impose the greatest control through a closed network and a primary care physician gatekeeper, with stronger utilization controls.

Therefore, the sequence from least to most managed care is Indemnity → PPO → POS → HMO. Other sequences don’t reflect this progressive increase in oversight and cost containment.