Managed Care "Has Arrived" In The USA

Managed care provided 75% of US workers with health coverage in 1995,from 50% in 1993, says a survey of 2,037 employers conducted by KPMG Peat Marwick and Wayne State University, published in the journal Health Affairs."Managed care isn't coming. It has arrived," the journal says.

Among the findings were that the number of small business employees in conventional, fee-for-service plans fell from 78% in 1993 to 31% in 1995. Many small firms added a managed care option for the first time or replaced a traditional plan with a managed care program, and those making this switch tended to have higher than average deductibles and premiums in their old plan. Managed care now covers 61% of staff in self-insured plans, from 31% in 1991, and its biggest rise has been in point-of-service plans, serving 20% of workers in 1995 against 9% in 1993.

Health maintenance organizations covered 28% of staff in 1995, up from 22%. Preferred provider organizations raised their share to 25% from 20%, while conventional plans fell to 27% from 49%.