Managed Care: A Cap on Health Care Costs



Managed Care: A Cap on Health Care Costs

Introduction

Before the introduction of Medicare and Medicaid in 1965, spending in the health care sector was dominated by private health insurance companies. Before their inception, 80 percent of the costs were either covered by the individual out of pocket or by insurance companies run privately (Feldstein, 2011). This led to the creation of the concept of managed care. The phrase managed care is the idea of various techniques being implemented to lower the costs associated with health care benefits while improving the class of care provided ...