State Legislation Inhibiting the Operation of Managed Care Pharmacy Programs Increases Costs

Masso, Anthony R.; O'Hara, Joseph
September 1993
Benefits Quarterly;1993 Third Quarter, Vol. 9 Issue 3, p46
Academic Journal
Managed care has become integral to health care reform proposals, yet U.S. state legislatures are increasingly asked to enact laws that would inhibit its growth. This article examines the impact of such restrictive measures on the effectiveness of managed care. The many components of managed care are directed toward assuring quality medical care for enrollees without containing costs. One of the goals of the education campaign of the insurance industry is to maintain a health care market free of encumbrances that would inhibit innovations in managed care delivery systems. The Health Insurance Association of America has sponsored studies to evaluate the empirical effect that restrictive legislation has on the ability of managed care to contain costs.


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