HMOs Gaining Increasing Control Over US Health Care

A strong future for self-medication was predicted by Russell Coile, president of the Health Forecasting Group, speaking at a recent Nonprescription Drug Manufacturers Association marketing seminar in New York. He also noted that the cost-driven growth of managed care will continue, giving health maintenance organizations increasing control over US health care.

HMOs now serve more than 50 million Americans, he said, predicting that federal and state governments (ie through Medicare and Medicaid) will follow the lead of the private sector toward increased managed care. Congressional efforts to cut Medicare will encourage seniors to join Medicare HMOs, he added.

But They Are Being Challenged Nevertheless, Mr Coile cautioned, the power of the HMO industry is not going unchallenged. Criticism of managed care is mounting, he said; health care providers, employers and the media are challenging premiums, HMO profits, denial of treatment and rationing. The results, he claimed, will include employer and business coalitions demanding lower prices from HMOs and government regulations, such as minimum 48-hour hospital stays for newborns and mothers.