Final answer:
A Health Maintenance Organization (HMO) is a managed-care arrangement where independent medical providers agree to offer services at a pre-set cost per patient, countering moral hazard and adverse selection.
Step-by-step explanation:
The type of managed-care arrangement described is most likely a Health Maintenance Organization (HMO). In an HMO, a group of independent hospitals and medical practitioners agrees to provide services at a set cost per patient, rather than billing for each individual service provided. Instead of the traditional fee-for-service model, where providers are compensated for each test, treatment, or procedure, the HMO model employs a prearranged fee structure that covers all the healthcare services required by an enrolled individual over a specified period. This structure serves to mitigate issues like moral hazard and adverse selection by aligning the financial incentives of both the healthcare providers and the patients, thus encouraging more cost-effective healthcare delivery.