In health insurance, what does the term "network" refer to?

In health insurance, the term "network" refers to a group of healthcare providers that have contracted with an insurer to deliver services to policyholders at negotiated rates. This arrangement allows insurers to manage costs while ensuring that their members have access to a range of medical services.

Members are typically encouraged or required to use the healthcare providers within this network to receive maximum benefits, which can include lower out-of-pocket costs for services. This system is designed to create a structured healthcare delivery system where both the insurer and the members can make the most of available healthcare resources while controlling costs.

The options describing different aspects of health insurance, like plans for low-income individuals, lists of covered medications, and departments handling claims, do not encapsulate the concept of a network, which is specifically about the relationships and agreements between the insurer and providers.