A contracted type of insurance plan in which health care providers are paid a specific amount to provide health care.

• A. Prepaid Plan
• B. Managed Care
• C. Primary Care Provider
• D. Mentor

Answer: (A)

A prepaid plan describes a contract where providers are paid a fixed amount per enrolled patient to deliver a defined set of health services, usually on a per-member-per-month basis. This capitation-style arrangement means the payment is made in advance to cover care, rather than providers getting paid for each individual service. That setup is characteristic of prepaid plans, such as many HMOs, and it emphasizes cost control and coordinated care.

Managed care is the broader system that aims to manage costs and coordinate services across providers, not the specific payment method itself. A Primary Care Provider is the physician who coordinates a patient’s care, not the payment arrangement. A mentor is unrelated to insurance payment structures.