Health Affairs, 23, no. 2 (2004): 43-55 doi: 10.1377/hlthaff.23.2.43 © 2004 by Project HOPE	New Online   How Would Obama, McCain Cover The Uninsured?   Debating Cost Of Uninsured   Try Medicare-For-All   HA Blog Top 10

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Managed Care

From Managed Care To Consumer Health Insurance: The Fall And Rise Of Aetna

This paper documents Aetna’s fall as the nation’s largest managed care plan and its subsequent reemergence as a smaller but more profitable multiproduct insurer. The paper emphasizes the transformation in corporate goals, product design, organizational structure, information technology, product mix, premiums, cash flow, net income, and share prices. Disciplined underwriting and pricing have restored the firm to profitability and set the foundation for new growth. The implications for the health care system as a whole are less unambiguously positive.

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