Question and answer
How do HMOs affect health care costs?
Many recent health-care reform proposals seek to reduce health-care expenditures by shifting the delivery of services toward managed-care organizations like HMO's. [ Proponents of HMO's often emphasize their ability to contain costs through oversight of physicians' decisions or by implementation of a capitated payment scheme that aligns physicians' incentives with those of the healthcare plan.
Indeed, existing evidence suggests that HMO's do have lower hospitalization rates and shorter hospital stays and also use fewer expensive tests and procedures than traditional health-care providers (see e.g., R. H. Miller and H. S. Luff, 1994). Some proponents also argue that the increasing prominence of managed care generates positive externalities that benefit consumers enrolled in non-HMO health plans. This argument typically invokes some notion of market discipline, arguing that traditional insurers or health-care providers will have to lower premiums to remain viable in a health insurance market made "more competitive" by the presence of managed-care plans. From these arguments, one could construct a strongly positive view of HMO's, which holds that their presence unambiguously improves consumer welfare by providing more efficient and lower-priced care to those who enroll in HMO's, while also forcing non-HMO plans to lower their premiums.[1] However, there remains considerable debate about the sources of cost savings generated by HMO's. Some critics claim that HMO's have lower costs and reduced utilization rates simply because they enroll consumers who are healthier than average, which only shifts costs from HMO's to traditional insurers. Further, HMO enrollees may not fully benefit from the lower costs if the HMO market is not sufficiently competitive. In the absence of competition, HMO's may "shadow price" traditional insurers--setting premiums that are just below traditional insurance premiums but which do not fully reflect their lower costs (e.g., Roger B. Feldman and Bryan Dowd, 1991). ]
Expert answered|selymi|Points 5079|
Question
Asked 7/26/2011 3:43:31 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
Give me a strong introduction on drug abuse
Weegy: Man has always saught pleasure, abatement of anxiety, and other alterations in states of consciousness through the ingestion of various natural and chemical substances. [ In the last few years drug abuse has become serious problem resulting into considerable harm both to the individual and to the society. Drug abuse adversely affects the well being, the progress and the health of the user and also cause tragedy to the family life of these persons. Drugs are handled by doctors, nurses, pharmacists and patients but the maximum responsibility for the proper distribution of drugs lies with the pharmacist. To understand the phenomenon of drug abuse, its important to know few terms which are commonly used in this context. Drug misuse: This refers to improper use of the medicines in a way that can lead to acute and chronic toxicity. It differ from drug abuse in the sense that; the improper use is unintentional and may be by mistake or accidental overdose. Drug Abuse: Drug abuse is defined as “inappropriate , and usually intentional excessive, self administration of a drug for non medical purpose.” 1.Almost all abused drugs exert their primary effect on the Central Nervous system. 2.Prolonged abuse of drugs leads to a.personality changes b.decreased productivity c. decreased economic and social misery. ] (More)
Question
Expert Answered
Asked 7/22/2011 3:44:58 PM
0 Answers/Comments
Give me a argumentive introduction on drugs
Weegy: Man has always saught pleasure, abatement of anxiety, and other alterations in states of consciousness through the ingestion of various natural and chemical substances. [ [ In the last few years drug abuse has become serious problem resulting into considerable harm both to the individual and to the society. Drug abuse adversely affects the well being, the progress and the health of the user and also cause tragedy to the family life of these persons. Drugs are handled by doctors, nurses, pharmacists and patients but the maximum responsibility for the proper distribution of drugs lies with the pharmacist. To understand the phenomenon of drug abuse, its important to know few terms which are commonly used in this context. Drug misuse: This refers to improper use of the medicines in a way that can lead to acute and chronic toxicity. It differ from drug abuse in the sense that; the improper use is unintentional and may be by mistake or accidental overdose. Drug Abuse: Drug abuse is defined as ?inappropriate , and usually intentional excessive, self administration of a drug for non medical purpose.? 1.Almost all abused drugs exert their primary effect on the Central Nervous system. 2.Prolonged abuse of drugs leads to a.personality changes b.decreased productivity c. decreased economic and social misery. ] ] (More)
Question
Expert Answered
Asked 7/22/2011 4:26:39 PM
0 Answers/Comments
what aspects of your writing process do you get the most benefits from?
Weegy: Creativity. It's really a major facotr in my writing (More)
Question
Expert Answered
Asked 7/22/2011 10:00:45 PM
0 Answers/Comments
Whay key functions and incentives of HMOs effect costs?
Weegy: Many recent health-care reform proposals seek to reduce health-care expenditures by shifting the delivery of services toward managed-care organizations like HMO's. [ [ Proponents of HMO's often emphasize their ability to contain costs through oversight of physicians' decisions or by implementation of a capitated payment scheme that aligns physicians' incentives with those of the healthcare plan. Indeed, existing evidence suggests that HMO's do have lower hospitalization rates and shorter hospital stays and also use fewer expensive tests and procedures than traditional health-care providers (see e.g., R. H. Miller and H. S. Luff, 1994). Some proponents also argue that the increasing prominence of managed care generates positive externalities that benefit consumers enrolled in non-HMO health plans. This argument typically invokes some notion of market discipline, arguing that traditional insurers or health-care providers will have to lower premiums to remain viable in a health insurance market made "more competitive" by the presence of managed-care plans. From these arguments, one could construct a strongly positive view of HMO's, which holds that their presence unambiguously improves consumer welfare by providing more efficient and lower-priced care to those who enroll in HMO's, while also forcing non-HMO plans to lower their premiums.[1] However, there remains considerable debate about the sources of cost savings generated by HMO's. Some critics claim that HMO's have lower costs and reduced utilization rates simply because they enroll consumers who are healthier than average, which only shifts costs from HMO's to traditional insurers. Further, HMO enrollees may not fully benefit from the lower costs if the HMO market is not sufficiently competitive. In the absence of competition, HMO's may "shadow price" traditional insurers--setting premiums that are just below traditional insurance premiums but which do not fully reflect their lower costs (e.g., Roger ... (More)
Question
Expert Answered
Asked 7/26/2011 4:08:02 PM
0 Answers/Comments
What is the importance of standard formatting to students?
Weegy: It is important to have standard formatting for students in accordance to preset specifications. Thank you for using Weegy.com (More)
Question
Expert Answered
Asked 7/27/2011 9:08:04 AM
0 Answers/Comments
25,361,109 questions answered
Popular Conversations
A geocentric system is ...
Weegy: A geocentric system is Earth-centered. User: In the past, astronomical observations were an important part of ...
5/29/2016 1:57:09 PM| 3 Answers
coercive
Weegy: The Coercive Acts were meant to reverse the trend of colonial resistance but actually provoked higher levels of ...
5/29/2016 3:19:03 AM| 2 Answers
Which of the following statements does NOT describe how teens can ...
Weegy: In order to gain the maximum benefits from an exercise program, you should include both cardiovascular training ...
5/29/2016 9:17:54 AM| 2 Answers
The wicked witch and the big bad wolf are examples of A. ...
Weegy: A. Dynamic Characters, characters you know and love from fictional stories. User: If an author wanted to ...
5/29/2016 11:33:48 AM| 2 Answers
In order to minimize the difficulty associated with meeting monthly ...
Weegy: In order to minimize the difficulty associated with meeting monthly loan payments, the debt service ratio should ...
5/29/2016 9:21:26 PM| 2 Answers
Why are closing costs a one time fee?
Weegy:
5/30/2016 12:02:23 AM| 2 Answers
What is Marasmus? User: What is kwashiorkor?
Weegy: Kwashiorkor is a childhood disease that is caused by protein deprivation. User: What is ketosis? User: ...
5/30/2016 9:38:40 AM| 2 Answers
Weegy Stuff
S
Points 733 [Total 733] Ratings 10 Comments 613 Invitations 2 Offline
S
Points 713 [Total 713] Ratings 13 Comments 583 Invitations 0 Offline
S
Points 646 [Total 646] Ratings 0 Comments 646 Invitations 0 Offline
S
1
L
L
P
R
P
L
P
P
R
Points 299 [Total 12551] Ratings 2 Comments 279 Invitations 0 Offline
S
L
P
P
P
Points 166 [Total 3543] Ratings 0 Comments 166 Invitations 0 Offline
S
Points 38 [Total 107] Ratings 0 Comments 38 Invitations 0 Offline
S
L
Points 23 [Total 4115] Ratings 0 Comments 23 Invitations 0 Offline
S
Points 12 [Total 12] Ratings 1 Comments 2 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 4 [Total 4] Ratings 0 Comments 4 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.