Unformatted text preview: Managed Care as a Means of Cost Control With health-care costs increasing, health insurance providers are looking for ways to reduce costs. Traditionally, patients paid for most medical care on a fee-for-service basis, where physicians, laboratories, and hospitals charged set fees for procedures. Patients either paid the fees directly or paid a partial fee with a private insurance company paying the remainder. The patient and his or her employer shared the cost of premium payments to the insurance company. Such systems do not typically cover serious illness, or if they do, insurance companies substantially raise premiums for the individual and the employer. Until the last decade or so, most traditional insurance plans covered serious illness but not routine care. Blue Cross had separate plans for doctor visits and hospitalizations. In most plans, patients care....
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- Fall '09
- medical care, private insurance, Blue Cross, Insurance Company.