In which health insurance model do providers share in cost savings with insurers?

The correct choice highlights managed care organizations (MCOs) as the model where providers can benefit from cost savings alongside insurers. In managed care arrangements, providers work collaboratively with insurers to deliver care in a cost-efficient manner. This often involves a focus on preventive care and managed services to keep patients healthy and avoid unnecessary hospitalizations or procedures, which can lead to significant savings.

When cost-saving initiatives are successful, providers in an MCO can share in the financial benefits, incentivizing them to engage in practices that reduce costs but still maintain quality care for patients. This sharing of savings aligns the interests of providers and insurers, promoting a more integrated approach to healthcare delivery.

Other models like PPOs (Preferred Provider Organizations) and HMOs (Health Maintenance Organizations) may have some degree of cost control and efficiency, but they typically do not implement direct shared savings arrangements to the extent seen in managed care organizations. Alternative reimbursement models might incorporate shared savings, but they vary and can include a broader range of payment strategies that may not specifically emphasize the collaboration seen in MCOs.