What is a correct statement regarding discounts managed care plans negotiate with hospitals?

The statement that the size of the discount varies directly with the actual price of services is accurate. Managed care plans engage in negotiations with hospitals to secure discounts on the prices of services provided to their members. The amount of discount often correlates with the hospitals' standard pricing; thus, when the actual price of services is higher, managed care plans may negotiate higher discounts in order to make the service more financially viable for the plan and its members.

This dynamic reflects the leveraging of purchasing power that managed care plans hold, which allows them to obtain better pricing structures based on the volume of patients they direct to specific hospitals. In essence, the relationship between the prices hospitals charge and the discounts that managed care plans negotiate is typically direct: higher prices may lead to more substantial discounts during negotiations, as hospitals may be more willing to lower prices to maintain patient volumes.

Other statements may reflect misunderstandings about how managed care operates. For instance, managed care plans rarely pay full billed charges, as they actively negotiate lower rates to keep costs down for both the plan and members. Furthermore, discounts exceeding 40 percent are not uncommon, depending on the services involved and the agreements reached in negotiations. Thus, the nuances of pricing in healthcare underscore why option C stands out as the