Conceptual and language changes are necessary to accompany the paradig
m shift from fee-for-service medicine to managed care, Medical necessi
ty is an inadequate and ambiguous term defined differently by provider
s, payers, patients, and legislators, The attempt by legislators in Mi
nnesota to develop a universal standard benefits set for healthcare se
rvices strikingly underscores the need to define relevant terminology
to accompany the transition to managed care, We suggest the term appro
priate and necessary healthcare as a state-of-the-art term for the new
era of managed care.