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%.
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.