Managed Competition

Managed competition is a healthcare system approach where different insurance plans or providers compete in a regulated environment. This competition encourages quality, efficiency, and cost-effectiveness, as plans strive to attract consumers by offering better services at lower prices. Policymakers set rules to ensure fair play and prevent practices like cherry-picking healthier individuals. The goal is to combine choice and competition to improve healthcare quality while controlling costs, ultimately giving consumers more options and better value for their healthcare dollars.