Final answer:
Managed care health insurance plans aim to control costs by negotiating lower rates with healthcare providers, addressing adverse selection, and reducing moral hazard in the provision of care. The primary mechanism is through negotiation power due to a large client base and a per patient remuneration system in organizations like HMOs.
C. Control health insurance claims expenses.
Step-by-step explanation:
The purpose of managed care health insurance plans is primarily to control health insurance claims expenses. These plans achieve cost savings by negotiating lower rates with health care providers due to the high volume of patients they represent. This addresses adverse selection in insurance markets by providing more affordable insurance options that attract a wider range of individuals, not just high-risk parties. Moreover, managed care plans like Health Maintenance Organizations (HMOs) reimburse healthcare providers on a per patient basis, which can limit the quantity of care provided and help reduce moral hazard by incentivizing providers to offer necessary care without unnecessary extras. The aim is not necessarily to provide access to the largest number of physicians possible or to ensure the continuation of coverage when an employee leaves the plan, nor is it specifically designed to increase employment in the healthcare industry.