To: Zebra 365 who wrote (3716 ) 6/26/1998 12:14:00 AM From: Ibnbatutaa Respond to
Zebra, Zurdo and co: good discussion, many valid points. The fact is that the HMO / Managed Care plans became very popular with Employers (as opposed to indemnity) during the last recession because of health-care cost inflation which was one factor in declining profits, easy to target, with a ready solution available: managed -care. Managed-care has controlled health-care inflation by drastically reducing payment to providers (docs and hospitals, and shifting risk to them (capitation)), and to some extent by pharmacy benefit management (using generics, or formulary (preferred) drugs because a drug company gives a better deal for an exclusive contract to supply one of several available drugs in a class).
