GAO report medicare pullout outrages many hmo industry

Calculating healthcare businesses' voluntary disenrollment rates from easily obtainable data and examined the degree to which these speeds varied one of the plans, concentrating on: disenrollment rates for most Medicare HMOs operating in 1996; the disenrollment rates of plans operating at the very same markets; disenrollment rates of relatively fresh plans; and also the proportion of disenrollees who switched into feeforservice. Of and enrollment in healthcare companies have risen radically. Back in 1980, 236 HMOs functioned 9 million associates.

New HMOs Are different in organizational arrangement and agreements compared to the HMOs which were operating from the 1970 s, and also the healthcare markets that they function additionally provide shifted appreciably with the rising supply of physicians and diminishing hospital admissions. Thus the accepted research findings on HMO operation in the 1970s might have only limited usefulness in understanding the function of HMOs and their influence on the current market for health care services. This can be of special concern since the Health Care Financing Administration believes the additional expansion of managed care choices available to Medicare and Medicaid beneficiaries. In This specific guide, the writer reports evidence on the connection between HMO organizational structures and functionality, as well as the tendencies within That the HMO industry toward new organizational arrangements. The consequences For both Medicare and Medicaid hazard contracting can also be analyzed.

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