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Managed care. The term managed care or managed healthcare is used in the United States to describe a group of activities ostensibly intended to reduce the cost of providing health care while improving the quality of that care (managed care techniques).
Some insurance plans work with certain health care providers and facilities, which are part of the plan's network, to provide care at lower costs. This is called managed care. There are different kinds of managed care plans: 1  Health maintenance organizations (HMOs).