Skip to main content

Managed Health Care: Effect on Employers' Costs Difficult to Measure

T-HEHS-94-91 Published: Feb 02, 1994. Publicly Released: Feb 02, 1994.
Jump To:
Skip to Highlights

Highlights

GAO discussed managed health care and its effect on employers' health care costs. GAO noted that: (1) certain managed care plans' potential for providing care at lower cost depends on the plans' controls on price and the use of services and the incentives for consumers and physicians; (2) group and staff health maintenance organizations (HMO) have the most potential for cost savings; (3) the effect of managed care on employers' health care costs is difficult to measure; (4) although some employers' overall health care costs have initially decreased under managed care plans, their health care costs will likely increase in subsequent years; (5) the major problem with managed care concerns the limited choice of physicians and services; (6) employers are offering newer types of managed care plans that are more flexible but have less cost-saving potential to gain employees' acceptance; (7) patients rate managed care plans lower than indemnity plans in quality of physician care; (8) more than half of managed care enrollees are in preferred provider and point-of-service plans; and (9) employers are adding quality monitoring to their managed care efforts to improve their ability to assess health care plans and providers.

Full Report

Office of Public Affairs

Topics

Cost analysisEmployee medical benefitsHealth care cost controlHealth insurance cost controlHealth maintenance organizationsHealth services administrationManaged health carePatient care servicesPhysiciansHealth care costs