Which type of arrangement allows healthcare providers to offer services at reduced costs through their insurance?

Managed care is a system designed to reduce healthcare costs while improving the quality of care. It involves a network of healthcare providers who work together to provide services at a lower cost through agreements with insurance companies. The managed care model allows for cost control by negotiating rates and implementing measures to ensure the efficient use of resources. This can include preventive care, utilization review, and other strategies aimed at reducing unnecessary expenditures.

The primary goal of managed care is to offer comprehensive medical services to patients while maintaining lower costs for both providers and consumers. Through various models like Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs), managed care facilitates access to a wide range of healthcare services, often with lower copays or premiums, making it a popular choice for insurance coverage.

In contrast, fee-for-service models typically do not involve pre-negotiated rates, leading to higher overall costs. Capitation involves paying a set amount per patient regardless of the number of services provided, which may not offer the same level of flexibility in service offerings. Direct pay arrangements usually involve patients paying providers directly without insurance intermediaries, often resulting in higher costs for patients. Thus, managed care prominently features arrangements that lower costs while maintaining access to healthcare services.