Managed Care health insurance has a fairly long history. This type of insurance has been in existence since the 1930s, but recently became a lot more popular in the last twenty years as people began to learn of its many benefits. Nowadays, most of the group insurance offered by companies to their employees is a type of managed care policy.
Managed Care took off in the 1980s, a time when medical costs had skyrocketed along with insurance rates from Traditional Indemnity insurance. Managed Care Insurance seemed to swoop in and take charge, cutting down the rising medical costs and putting a stop to what it deemed as “unnecessary hospitalizations. People embraced this new type of insurance at first. They were happy to have medical insurance that saved them some money. Soon, everyone was covered with the same “cookie cutter” type of insurance with Managed Care. Preventative care was emphasized in the hope that more serious and ultimately more expensive illnesses could be avoided.
It did not take long for a backlash to start. People began to complain that the health insurance companies were controlling them by not giving quality care and by denying them medical services and hospital visits that they really needed. They accused the insurance companies of being more interested in saving money for themselves by implementing the Managed Care plan than they were in the health and well being of the thousands of people who were covered by a Managed Care policy. Many states passed laws concerning the standards that would have to be upheld in that state by any company’s Managed Care policy. Of course, this cost the insurance companies more money, and they were not pleased.
Partly because of the public outcry, and partly because they did not want to continue to lose money, the insurance companies designed several other types of comprehensive insurance plans with more options for policy holders to choose from. People began to save money even though insurance premiums were more expensive. They were using more health care options than they did on Managed Care, which ended up being cheaper for them. The insurance companies were hesitantly pleased.
Some medical experts believe that the use of Managed Care did do some good by making health care professionals even more professional, creating higher standards, and assuring more quality care for patients. Others believed that it caused the insurance companies to offer more choices to the public, but at a cost – higher prices. Since everything has gone up in price, no one should be surprised that medical care has as well.
Managed care is rumored to make a comeback in the near future. It will be interesting to see how the consumers of today take to this type of insurance.
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