Which of the following accurately reflects the purpose of managed care?

Study for the Vermont Life, Accident and Health Insurance Exam. Prepare with flashcards and multiple choice questions, each with hints and explanations. Achieve success in your exam!

Managed care is designed to provide a structured approach to health service delivery and cost control. The primary goal of managed care is to coordinate patient care efficiently while managing healthcare costs. This approach involves implementing various strategies such as utilizing a network of healthcare providers, requiring prior authorizations for certain services, and emphasizing preventive care to avoid unnecessary expenses. By doing so, managed care aims to improve the quality of care provided and contain costs, benefiting both patients and insurers.

The other options do not reflect the essence of managed care accurately. Eliminating all healthcare costs is neither feasible nor desirable, as healthcare services require funding and resources. While competition among providers can be an element of the healthcare market, it is not the primary purpose of managed care, which focuses on coordination and efficiency. Additionally, managed care encompasses a broad range of services, not just emergency medical services, which is a narrow focus and not representative of its overall objective.

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