Health delivery method that integrates the financing and provision of appropriate health care services to covered individuals by means of arrangements with contracted providers to furnish a comprehensive set of health care services to members, explicit criteria for the selection of health care providers, and significant financial incentives for members to use providers and procedures associated with the plan. Managed care plans typically are either health maintenance organizations (HMOs), preferred provider organizations (PPOs), or point-of-service (POS) plans. Managed care services are paid by a variety of methods including capitation, fee-for-service, or a combination of the two.