Explain what a 'network' means in health insurance.

A 'network' in health insurance refers to a group of healthcare providers, such as doctors, hospitals, and specialists, who have agreed to provide services to insured individuals at reduced rates. This arrangement often allows insurance companies to negotiate lower costs for their policyholders, creating a system where members can access care at lower out-of-pocket expenses compared to going outside of the network.

Healthcare networks are critical in managing healthcare costs and ensuring that insured individuals receive quality care while keeping expenses manageable. When individuals use providers that are part of their insurance network, they may benefit from lower copayments, deductibles, or coinsurance, making it financially advantageous to seek care from in-network providers.

This structure contrasts with other options mentioned, such as the total number of covered medical services or a database of all insurance policies, which do not define what a network is. Networks specifically pertain to the relationships between providers and the insurance company, aimed at containing costs and ensuring quality care.