Question

Medical cost containment (aka Managed care)

a) Emphasizes cost-effective healthcare.
b) Focuses on unlimited medical expenses.
c) Aims to increase out-of-pocket expenses for patients.
d) Allows unrestricted access to healthcare services.

Answer 1

Managed Care emphasizes cost-effective healthcare by shifting incentives from fee-for-service to a fixed fee per patient approach, through systems like HMOs, and is supported by ACA regulations.

Step-by-step explanation:

Medical cost containment, also known as Managed Care, focuses predominantly on delivering cost-effective healthcare. This approach contrasts with fee-for-service, where healthcare providers are paid for each service they perform, potentially leading to higher healthcare costs. Managed care aims to mitigate moral hazard by incentivizing healthcare providers to limit the quantity of care provided, aligning payments with patient health outcomes rather than services rendered. Under managed care systems like Health Maintenance Organizations (HMOs), providers receive a fixed fee per patient, encouraging proactive management of patient health to avoid future complications and expenses. The Affordable Care Act (ACA) introduced additional regulations, such as expenditure caps and requirements for electronic medical records, to further contain healthcare costs.