Some managed care plans use physicians, hospitals, and health care organizations that agree to make medical services available to insureds at discounted fees. Insureds are not required to use these entities, but if they do, health care costs are less than if these entities are not used. Such health care entities are called

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PPOs are managed care plans that contract with medical providers, such as doctors and hospitals, to offer services to insureds at a discounted rate. Insureds are not required to use these providers but are incentivized to do so since using these providers results in lower healthcare costs. This arrangement allows insureds a greater degree of flexibility in choosing their healthcare providers while also saving them money. Thus, the best choice for healthcare entities described in the scenario is PPOs.

Some Managed Care Plans Use Physicians, Hospitals, and Health Care