Final answer:
True, managed health care plans do impose more restrictions on the choice of health care providers than indemnity plans. Managed care aims to control costs and reduce the moral hazard by having predetermined provider networks, while indemnity plans offer more flexibility in choosing providers.
Step-by-step explanation:
The statement that managed health care plans impose more restrictions on the specific health care providers compared to indemnity plans is True. Indemnity plans, or fee-for-service plans, allow patients to choose any healthcare provider and receive reimbursement for a percentage of the costs of the services they provide. On the other hand, managed health care plans, such as Health Maintenance Organizations (HMOs), have a network of approved providers and typically require members to choose a primary care physician who coordinates their care, which can include referrals to specialists within the network. This structure is designed to reduce the moral hazard and control costs by having a fixed payment per enrollee, but it comes with restrictions on provider choice.
Adverse selection is another challenge in insurance markets, which happens when there's an asymmetry of information between the insurance company and the buyers. To mitigate the risks of adverse selection and moral hazard, HMOs implement fixed reimbursements and focus on provider incentives to limit unnecessary services while maintaining care quality.