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Posting date: August 11, 2004
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Health Affairs, 10.1377/hlthaff.w4.427
Copyright © 2004 by Project HOPE


Web Exclusives

MarketWatch: Managed Care Rebound? Recent Changes In Health Plans’ Cost Containment Strategies

Glen P. Mays 1*, Gary Claxton 2, Justin White 3

1 Glen Mays is an associate professor in the Department of Health Policy and Management, College of Public Health, University of Arkansas for Medical Sciences in Little Rock.
2 Gary Claxton is vice president of the Henry J. Kaiser Family Foundation in Washington, D.C.
3 Justin White is a research assistant at Mathematica Policy Research, also in Washington.

*Corresponding author.

  Abstract

Large increases in health care costs combined with an economic slowdown have created pressures for health plans and employers to reconsider cost containment strategies that were scaled back after the managed care backlash. In this paper we examine how plans’ approaches to cost containment and care management have evolved since 2001. Plans reintroduced and refocused some utilization management techniques during 2002 and 2003 while continuing to invest in disease and case management. Some also began to experiment with new variants of managed care, including tiered provider networks and incentive-based provider payments. However, few respondents believed that these strategies alone would greatly reduce future costs.

Key Words: Business Of Health, Consumer Issues, Health Reform, Health Spending, Managed Care


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