What type of insurance plan promotes quality, cost-effective healthcare by monitoring patients and encouraging preventive care?

Managed care is a type of insurance plan designed to promote quality and cost-effective healthcare by closely monitoring patient care and emphasizing preventive services. This model typically features a network of providers and facilities that patients are encouraged to use, fostering a more coordinated approach to healthcare delivery. Managed care organizations often implement strategies such as requiring patients to choose a primary care physician who manages their healthcare needs, offering lower out-of-pocket costs for in-network providers, and incorporating preventive care services without copayments.

This framework not only helps reduce unnecessary healthcare expenditures but also emphasizes the importance of preventive measures, which can lead to improved health outcomes and lower overall costs by catching health issues early on. By incentivizing patients to engage in preventive care and responsible use of medical services, managed care effectively balances patient health needs with cost management in the healthcare system. This is why it is recognized as the correct answer to the question regarding the promotion of quality, cost-effective healthcare.