What is a primary characteristic of managed care insurance models?

The primary characteristic of managed care insurance models is that they typically replace traditional indemnity plans with prepaid services. In managed care systems, providers are often connected to a network and may be paid a set fee for each patient or service, which encourages cost control and coordinated care. This structure contrasts with traditional indemnity plans, where patients can choose any provider and reimbursement is based on billed charges. By emphasizing prepaid services, managed care models promote preventive care and overall health management, ultimately aiming to reduce healthcare costs while maintaining quality of care.