Health care reform system wherein health plans offer their most competitive rates to provide health insurance coverage. This system changes competition in the health insurance market from risk (insuring healthy persons instead of those with preexisting conditions) to price. Employers form large purchasing networks to obtain insurance coverage at reduced rates. The employers pay for the employees and the employees choose a health plan they want during open enrollment and pay the difference between the employer’s contribution and the cost of the plan. The insurance coverage is transferable if the employee changes jobs. Also known as managed cooperation . See also consumer health alliances .