Question

In: Economics

Until about the year 2000, managed care was viewed by many (mostly employers) as an effective...

Until about the year 2000, managed care was viewed by many (mostly employers) as an effective means of controlling health care costs. Briefly address why there has been a backlash against HMOs since 2000.​

Solutions

Expert Solution

HMO act was passed in 1970 by the congress. After that it kept on gaining popularity. From 3 million in 1970 to grew upto 80 million in 1990. But this honeymoon period was only upto 1990, after that the root to backlash was established.

This was the time when employers started offering the employees a choice of either taking a traditional health insurance plan or HMO. But as the cost was more in traditional system, Employers started putting employees in simgle manged system. Later changed it to PCP which was offering reduced cost and increase quantity. This was the start of the backlash.

There was a start in the problem to maintain the paperwork which included the details of the patient history. Rapid growth affected the effeciency of teh delivery system. People started felling disconnected and cold as the system was trying to be beauricratic and distant. Problems were inclided more towards emotonal side rather tha the physical side. Liek an unneccesay diagnostic test or an additional day at hospital just to increase the bill.

Ptress started printing the Horro stories of HMO. The time magazine is one such example whichwrote an article with a headline in bold " Whant yor health care WONT cover" . HMO was disparage to movies cartoon, jokes, meme etc.

Eventually it died down.


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