Managed Care "Managed Fair"

Paper Summary:

This paper considers the concepts of Insurance Providing Organizations (IPOs) and managed care and whether they indeed provide health care and save the economy money. It looks at the history of managed health care in America and the current advantages and disadvantages of the system.

From the Paper:

"Insurance Providing Organizations (IPOs) and managed care have risen in popularity over the past twenty years. Commonly thought to be better for the economy by saving money, many people jumped on the health care bandwagon and joined these insurance-providing agencies. Statistics from the past eleven years show that managed care has reduced national health care costs and the yearly inflation rate from 12% in 1993, to less than 5% in 1996 (Furrow, n/p); but at what cost? The driving factors behind managed care in today's society are becoming ever more skewed. Governmental health care reform in the United States has been so concerned with money that it has compromised the quality and standard of care. In the end, cost constraints are not proving effective because the readmission rate has risen due to care being provided at a lower standard. Quality of care is also being compromised by the constraints put on care to control expenditures by medical facilities."

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