What advantage do managed-care plans offer customers?

Managed-care plans are designed to provide cost-effective healthcare options, which is a significant advantage for customers. These plans often negotiate lower prices with healthcare providers due to the volume of patients they manage, which translates into premium savings for policyholders. Additionally, managed-care arrangements typically lead to reduced out-of-pocket costs for customers. This can include lower copays, deductibles, and overall healthcare expenses, making healthcare more affordable for those enrolled in these plans.

The other options present characteristics that are generally not associated with managed-care plans. For example, increased flexibility of provider choice is often limited in managed-care models, as patients may need to choose from a network of providers. Unlimited coverage for all services could misrepresent the typical limitations and exclusions that managed-care plans have. Lastly, many managed-care plans do require prior authorizations to ensure that services are medically necessary and appropriate, which is not aligned with the idea of having no prior authorization requirements.