What is the main purpose of managed care health insurance plans?

The primary purpose of managed care health insurance plans is to control health insurance claims expenses. This approach focuses on reducing the overall costs of healthcare while maintaining quality of care. Managed care organizes healthcare services and providers to deliver care in a more coordinated and efficient manner. By doing so, it seeks to minimize unnecessary tests and procedures, encourage preventive care, and manage chronic conditions effectively, ultimately leading to lower claims expenses.

While enhancing patient outcomes and expanding provider networks are also important aspects of managed care, they serve as means to achieve the broader goal of cost containment. Managed care plans often negotiate lower rates with providers, implement utilization reviews, and promote coordinated care, which contribute to controlling expenses associated with claims. Therefore, the emphasis on managing costs is central to the operation of these plans, reflecting the manner in which they are designed to function within the healthcare system.