Analysts Question Value of Managed Care

By Freudenheim, Milt | THE JOURNAL RECORD, September 2, 1992 | Go to article overview
Save to active project

Analysts Question Value of Managed Care


Freudenheim, Milt, THE JOURNAL RECORD


By Milt Freudenheim

N.Y. Times News Service

Trying to slow the rise in health care costs, American employers spent some $13 billion last year for managed care services. But national spending on health continued to grow at doublegit rates, leading some experts to question the effectiveness of managed care.

Managed care typically includes a review of each case before agreeing to pay for treatment. The payers often also encourage patients to use networks of hospitals and doctors to meet costnd qualitylated standards of care, often at discounts.

Many health care proposals in Congress and state legislatures rely heavily on managed care for cost control. But the Congressional Budget Office discouraged hopes for savings in a recent report to the House and Senate taxiting panels.

"The growth of managed care does not appear to have affected systemwide costs," the Budget Office said in a staff memorandum to Congress. "Based on existing knowledge, it cannot be assumed that further growth of managed care would reduce either the level or the rate of increase of systemwide healthcare spending," although it added that "reliable evidence on the effectiveness of managed care is relatively sparse."

National spending on personal health care grew by 10.7 percent, to $282 billion, last year.

Some companies report that managed care has helped slow the rise in their health costs. But hospitals and doctors often order more tests and procedures and raise fees to patients not under managed care.

The largest savings have shown up at health maintenance organizations in which doctors work on salary or in a group practice, the Budget Office added. It suggested that overall spending might be reduced by 10 percent in the unlikely event that everyone with health insurance joined this type of HMO.

About 39 million people are enrolled in HMOs, of which 15 million are in staff and group models. Fifty million more are eligible to use discount networks.

Gary Yeaw, group insurance director at Alliedgnal Inc., which spent $400 million in 1991 on employee and retiree heatlh care, said staff model HMOs had yielded much better results than more loosely organized medical networks.

He said health costs for 48,000 Alliedgnal employees in all types of HMOs had increased 10 percent to 11 percent annually since the company made a strong commitment to managed care six years ago, compared with increases of 20 percent a year for 22,000 employees under traditional coverage.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Analysts Question Value of Managed Care
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?