What is meant by 'network' in health insurance terms?

In health insurance terminology, 'network' refers to a group of medical providers that have formed an arrangement with an insurance company to offer services to policyholders at reduced fees. This network is crucial because it ensures that members can access a range of healthcare services while potentially minimizing their out-of-pocket costs. Providers within the network usually agree to accept certain payment terms, which can include lower fees than they would charge non-network patients, creating a cost-effective solution for both the insurer and insured.

For patients, using in-network providers typically means lower deductibles, co-pays, and coinsurance, which is why health insurance plans often encourage members to choose from their established networks. This can also ensure a higher level of care coordination as the network providers often work in collaboration with the insurance company.

The other options do not accurately capture the specific meaning of 'network' in health insurance. Coverage lists pertain to the specific services offered under a policy, the total number of insured individuals is related to the demographic size of the policy, and the terms and conditions refer to the contractual specifics within an insurance policy. Each of these reflects different aspects of health insurance but does not define what a network is.