Which description best defines managed care?

• A. A system managing cost, utilization, quality, and access of healthcare services
• B. A provider network with no cost controls
• C. A government-run nationwide health plan
• D. A hospital-based reimbursement model

Answer: (A)

Managed care is a system that coordinates and influences how care is delivered to control costs while maintaining or improving quality and ensuring access. It does this by organizing a network of providers, using tools like preauthorization and utilization reviews, and employing case and disease management plus performance measurement. The goal is to align incentives between payers and providers so that care is appropriate, efficient, and reachable for patients across the health system.

This description best captures all four critical elements—cost, utilization, quality, and access. The other descriptions fall short because they focus on only one aspect or describe a model that isn’t about coordinated care across the system: a setup with no cost controls, a government-run nationwide plan, or a hospital-centered reimbursement approach—none of these fully describe the integrated approach that managed care embodies.