Which definition best fits cherry picking in a managed care plan?

Which definition best fits cherry picking in a managed care plan?

• A. Marketing services to healthy people while avoiding those who are ill and costly
• B. Contracting separately for specific services
• C. Providing all services through a single plan
• D. Reducing premiums for low-risk individuals

Answer: (A)

Cherry picking in a managed care plan is about enrolling healthier, lower-cost individuals and steering away or excluding those who are ill or whose care would be costly. The definition that emphasizes marketing services to healthy people while avoiding those who are ill and costly directly captures this risk-selection tactic, where the plan aims to shape its member mix to minimize expenses. The other ideas describe different concepts: contracting separately for specific services refers to carve-outs or specialty arrangements; providing all services through a single plan describes an integrated or single-plan approach; and reducing premiums for low-risk individuals is about pricing or underwriting, not enrollment strategies.

Cherry picking in a managed care plan is about enrolling healthier, lower-cost individuals and steering away or excluding those who are ill or whose care would be costly. The definition that emphasizes marketing services to healthy people while avoiding those who are ill and costly directly captures this risk-selection tactic, where the plan aims to shape its member mix to minimize expenses.

The other ideas describe different concepts: contracting separately for specific services refers to carve-outs or specialty arrangements; providing all services through a single plan describes an integrated or single-plan approach; and reducing premiums for low-risk individuals is about pricing or underwriting, not enrollment strategies.