North Carolina Health Insurance Practice Exam

A "managed indemnity" plan is a hybrid insurance option that blends features of managed care with traditional indemnity insurance. This type of plan allows for a degree of flexibility and choice of providers that is characteristic of traditional indemnity plans while incorporating the cost management and efficiency aspects of managed care systems.

In managed indemnity plans, policyholders often have more freedom when selecting healthcare providers compared to strict managed care plans, but they also enjoy some cost-saving measures such as pre-negotiated fees with providers. This means that while members can seek out care from various healthcare providers, there may still be incentives to use network providers, leading to reduced out-of-pocket costs. This combination helps to offer a balance between financial protection and provider choice, making it appealing for individuals looking for versatility in their healthcare coverage.

The other options do not adequately capture the essence of managed indemnity plans. For instance, limiting coverage to only preventive services would not represent the broader scope of managed indemnity plans, which address a wider range of healthcare needs. Similarly, suggesting that a plan focuses solely on indemnity benefits fails to account for the managed care components that are integral to a managed indemnity plan's structure. Lastly, the notion of unlimited coverage for hospital stays does not