What type of plan contracts with doctors and hospitals to provide medical benefits at a preset price?

The type of plan that contracts with doctors and hospitals to provide medical benefits at a preset price is a Health Maintenance Organization (HMO). HMOs are structured to offer healthcare services through a network of providers who agree to provide care at set rates. This arrangement allows for lower costs for both the organization and the members since payments are typically made on a prepaid basis. Members of an HMO usually choose a primary care physician who coordinates their healthcare and provides referrals to specialists within the network when necessary.

In contrast, other types of plans operate differently. A health savings account (HSA) is a savings vehicle that allows individuals to set aside money for medical expenses, but it does not dictate how those services are provided or priced through contracts. Preferred Provider Organizations (PPOs) also contract with providers but allow members more flexibility to see out-of-network providers at a higher cost, and they generally do not have the strict network rules found in HMOs. Lastly, indemnity plans provide more freedom regarding healthcare provider choices but usually operate on a reimbursement basis rather than a predetermined price within a network.