Summery

Running head : SummaryNameInstitutionInstructorCourse codeSummaryAccording to the author of the first article , proponents of managed tending argue that this could quail cost without sacrificing the quality However addition impairment for health commission have lead to forebode into question of this managed care claim . Free-for-service where patients could choose which physician to direct them maculation the general agent could pay the service lead to many consumers existence lackadaisical about the cost as the insurer later all paid the health care providers . bonus to resign unnecessary care or shop for the take up price ceased to exist among consumers . This is what economist referred to as moral lot . The salary for service also induced health care providers to put more rather than less (Gorin 2003In 1973 , the congress enacted principle whose main aim was stimulate development of prepaid plans . Nixon establishment referred this as Health Maintenance Organization (H .M .O .

Although this plans designed to be non acquire , it was gradually extended to profit entities during Nixon administration . Ronald Reagan helped in change of the HMOs from the open-ended financing of fee-for-service to managed care . Other secern noise included laws that prevented insurers from entering into `selective agreements with providers . This lead to insurers organizing networks of ` favored providers so as to reduce risks associated with the managed care . Thus many health care providers had to impose mechan isms such as check out and gatekeeping so a! s to eliminate inappropriate care and reduce costs (Gorin 2003Extension of managed care to profit...If you want to get a wide-cut essay, drift it on our website: OrderEssay.net

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