LECOM Healthcare Management Practice Test 2026 – Complete Exam Prep

Managed care plans are designed to offer cost-effective healthcare services through contracts with a network of providers. These plans aim to reduce healthcare costs while ensuring that members receive quality care. By coordinating care among different providers and implementing specific guidelines for treatment, managed care plans can manage the utilization of services, which helps to keep medical costs down.

This model emphasizes preventative care and early intervention, which can lead to better health outcomes and reduced overall spending on healthcare. Members typically select a primary care physician who guides them through their care options within the network, ensuring that they receive appropriate and timely services while minimizing unnecessary expenses.

Managed care plans also negotiate rates with healthcare providers, enabling them to offer lower premiums compared to traditional insurance plans. This is a fundamental aspect of how managed care operates, providing members with a structured approach to accessing healthcare.

Other options do not accurately represent managed care plans. For example, insurance that only covers emergency services or plans exclusively utilizing government facilities would not encompass the broad objectives and mechanisms of managed care. Similarly, options lacking provider network restrictions do not reflect the core principle of managed care, which relies on a managed network to control costs and quality of care.