Managed care; nonprofits in healthcare HDHP

timer Asked: Jul 9th, 2015
account_balance_wallet $15

Question description

A brief history of the growth of HMOs is provided. Without the passage of the Health Maintenance Organization Act of 1973 and subsequent legislative revisions, it is questionable whether HMOs -- and their cousins, PPOs and POSs -- would ever have gained traction in the market. In less than 25 years, health plan enrollment of covered workers went from 73% in FFS plans to just 1%.

More recently, high deductible plans (HDHPs) have blossomed, coming seemingly out of nowhere to no accounting for about 13% of covered workers. Why? The following article from Kaiser Health News & the Washington Post suggests that an effort by employers to cut costs is the reason:

Do you agree?  If we assume that firms are profit maximizers, then we also must assume that they are cost minimizers (at a given level of output). Why would employers suddenly wake up and start adopting HDHPs? In 2 paragraphs, single space. 

Tutor Answer

University of Virginia

flag Report DMCA

Totally impressed with results!! :-)

Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors