Final answer:
A managed care organization functions similarly to an insurer by managing and paying for health care services for its members, often utilizing networks of approved providers to manage costs and quality of care.
Step-by-step explanation:
When considering the function of a managed care organization (MCO), it is essential to understand the different ways healthcare can be organized and financed. In a traditional fee-for-service health system, medical care providers are reimbursed for each service they provide. In contrast, a health maintenance organization (HMO), which is a type of MCO, reimburses medical care providers with a fixed amount per patient, irrespective of the number of services provided. This system creates incentives for providers to efficiently manage the care they offer, potentially reducing unnecessary procedures and costs. With regard to the options provided, the function of a managed care organization aligns most closely with that of an insurer (option b) because it involves organizing and paying for the care provided to enrolled members, often by creating a network of approved providers and managing the quality and cost of the care they provide.