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Key Policy Area 3 - Managed Care and Markets

anaged care is increasingly regulated, in part because of consumer concerns about how cost-containment techniques affect quality. HSC research has tracked the extent of such techniques and examined how they may be affecting care delivery and consumer and physician perceptions of quality. Contrary to the anecdotes, HSC researchers have found few differences in access and use of services among types of managed care plans and between managed care and indemnity insurance. At the same time, HSC found that negative perceptions about HMOs taint people’s ratings of their health care.

Drawing on successive rounds of site visits, HSC has tracked the evolution of managed care and helped policy makers to understand implications of the consumer backlash that is now dismantling the original vision. In the future, HSC will document whether consumer satisfaction improves as plans relax care management and whether physicians have less trouble obtaining needed services for patients—or more problems, as may be the case for hospital services.

Burgeoning health care information on the Internet, the rising tide of aging baby boomers who promise to be far more demanding consumers and other factors portend a new age of consumerism in health care. It is interesting to note that HSC research has found that consumers are not all that knowledgeable about how their health plans work. HSC surveys will continue to track how consumer access to information may affect patient-physician interactions and, from doctors’ perspective, the cost and quality of care.

Market changes—including instability in health plan provider networks, consolidation among providers and insurers and the loosening of managed care—could lead to a range of policy responses or a decision to back away from regulation. For example, greater market consolidation of plans or hospitals may lead to antitrust actions or attempts to limit rate increases. On the other hand, some aspects of proposed federal patient protection legislation may be moot as plans move to provide better access to specialists and discard preauthorization requirements.

Related Publications by HSC Staff

Health Affairs, Vol. 20, No. 2 March/April 2001
Do Consumers Know How Their Health Plan Works?
by Peter J. Cunningham, Charles Denk and Michael Sinclair

Issue Brief No. 35 February 2001
Back to the Future? New Cost and Access Challenges Emerge: Initial Findings from HSC’s Recent Site Visits
by Cara S. Lesser and Paul B. Ginsburg

Issue Brief No. 30 September 2000
Health Care Perceptions and Experiences: It’s Not Whether You Are in an HMO, It’s Whether You Think You Are
by James D. Reschovsky and J. Lee Hargraves


"We have been through a lot, and we're not any closer to a long-term resolution of the system's fundamental problems," says Paul Ginsburg, president of a Washington, D.C., think tank called the Center for Studying Health Systems Change.

—The Wall Street Journal, February 21, 2001

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