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Managed Competition

Details of this Plan
Advantages
Disadvantages
Think About It
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Just the Facts!

  • Managed Competition is based on dividing people into "health alliances."

  • These alliances include all types of people.
    Alliance members bind together to negotiate deals with Provider Groups.

  • Provider Groups are composed of doctors, hospitals, and insurance companies.
    They offer a range of health plans to choose from.

  • Provider Groups compete with each other to attract patients.
    This would help manage the cost and quality of care.
    Patients would look for the plan that offered the best care for the best price.

  • The government makes sure that the poor are enrolled in health alliances.
    Uncle Sam also monitors the quality of health care that is available.

  • This plan is among those proposed by President Bill Clinton.

  • Funding would be through taxes, employee insurance premiums, and an "employer mandate."

  • The Employer Mandate is a premium that must be paid by employers.

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Advantages

Portability of insurance
Universal Coverage
Accessibility - anyone can get medical care through the system
Comprehensive - covers all necessary care
Control costs
Control quality

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Disadvantages

Have to deal with "gatekeeper"
Less choice of doctors
Harder to access specialists
Quality may be reduced to keep costs down
Too much emphasis on $$$
More paperwork & administration

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Think About It :
This plan has never been tried in the U.S.
Some critics wonder if Manged Competition would do more harm than good.....

  • What wil happen in rural areas
    where there are few people, and few doctors?

  • Certain plans might attract specific types of people.
    What could happen if Provider Groups catered
    to specific alliances because they are more profitable
    (such as the elderly or very sick)?

  • How can we ensure that alliances and
    Provider Groups represent the needs of all members?

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