Final answer:
Managed care plans combine health insurance and healthcare services and focus on healthcare incentives of providers. They are an alternative method of organizing health care that differs from the traditional fee-for-service model.
Step-by-step explanation:
Managed care plans combine health insurance and healthcare services. They are an alternative method of organizing health care that focuses on healthcare incentives of providers rather than consumers. In the United States, most healthcare has traditionally been provided on a fee-for-service basis, where medical care providers are paid for the services they provide. However, in recent years, the structure of healthcare provision has shifted to an emphasis on health maintenance organizations (HMOs) that provide healthcare for a fixed amount per person enrolled in the plan, regardless of the number of services provided.