Which statement best describes the progression of management in the Managed Care Continuum?

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

Answer: (D)

The progression shows increasing levels of management and cost containment across the plans. Indemnity plans are traditional fee-for-service with little oversight, so they have the least management. PPOs introduce negotiated network discounts and some utilization controls, plus the option to see out-of-network providers at higher cost, which adds more management than indemnity but not as much as tighter plans. POS blends features of HMO and PPO: you can choose in- or out-of-network, but care typically requires a primary care physician and referrals, adding another layer of management. HMOs are the most managed, with prepaid arrangements and strict gatekeeping, and little to no coverage out-of-network. Therefore, the sequence Indemnity → PPO → POS → HMO correctly represents increasing management.