Managed Care Failure

Improved Essays
CMS (2015) informs us that in 1990's managed care plans managed reducing costs by negotiating discounts from providers and used lower cost settings (i.e., hospital versus ambulatory surgery center). As consumers required less restrictive care their utilization increased and such health expenditures increased. This is not because the managed care organizations (MCO's) have failed or they do not contain costs, it is a function of consumer demand. MCO's work diligently to control costs by ensuring the care is delivered in the safest cost effective setting, managing staff patient ratios, leveraging size to obtain the lowest possible price and standardizing the supply chain.

MCO's can effectively manage costs, especially when compared
…show more content…
Carmen et al. (2015) reports a 6.9 million enrolled in Medicaid during the period September 2013 and February 2015. With the trend of Medicaid plans using MCO's, the Medicaid Expansion component of the ACA will inevitably grow and take a much larger role in healthcare delivery. The ACA has undeniably expanded coverage but there are questions on whether or not it has provided better access and …show more content…
In the survey, four of the top 5 plans were or has MCO options for care. While the clinical measures earned the top five the highest ranking, it was interesting to note that patient satisfaction was not ranked as high performing. I can't help but wonder if our instant access to information and for some, a need for immediate gratification, impacts the perception of our MCO. The organizational goal is to manage quality and cost, for our benefit. This will inevitably result in denials and waiting for clinical trials to prove benefit. Yet, we are inundated with information, not all of it complete and accurate. Many use this information to self diagnosis and treat. Some walk into their provider office with a treatment plan in mind. When denied access to this plan, do we feel cheated, not cared for or mistreated leaving us with a negative perception of the MCO and its commitment to

Related Documents

  • Improved Essays

    WK1: A1: DQ2: (Required Question For ALL Students- Graduate & Undergrads) Wk1 DQ2: It has been postulated that the Affordable Care Act (ACA) is not financially sustainable. In your opinion, should the ACA be revised/amended or repealed/defunded? Why or why not? Please discuss and support your opinion with outside sources.…

    • 618 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The system of care currently implemented by the United States is an aggregation of programs created to target subpopulations with specific concerns. This model allows policymakers to address smaller communities with likeminded goals and needs. Medicaid serves over 70 million people, providing them with insurance and relatively inexpensive benefits. Medicaid funds many health centers, hospitals, and long-term care facilities in low-income areas, but many more providers refuse to see Medicaid patients due to lower payment rates. Federally standardized reimbursement rates might ensure fair payments for providers and accessible and affordable care for beneficiaries, but one national program may not meet the patient needs and financial conditions of each…

    • 1044 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    APRN Challenges

    • 828 Words
    • 4 Pages

    “The Patient Protection and Affordable Care Act (PPACA), also known as the Affordable Care Act, is the largest health care coverage reform since the execution of Medicare” (Rosenbaum, 2011). The intent of the PPACA is to provide affordable health insurance coverage throughout the lifespan. The PPACA will reduce the uninsured by more than half; thus, covering nearly ninety-four percent of the population. Rosenbaum (2011) suggests the PPACA will curtail the uninsured by thirty-one million people; resulting in an increase of Medicaid enrollment by fifteen million people. Nearly twenty-four million people will continue without health care coverage.…

    • 828 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Obamacare has been largely successful. The Affordable Care Act’s overall goal of reducing the number of uninsured person has been met. According to the New York Times, “by allowing young people to remain on their parents’ plans until they are 26, the ACA has also reduced the amount of uninsured youth from 34 to 21 percent in 2010”.…

    • 535 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Managed Care Continuum

    • 663 Words
    • 3 Pages

    Short Paper 2 Managed care is constantly progressive. It is a field that is continually evolving. At the far left of the continuum of managed care lies managed indemnity and to the far right is closed panel HMOs. When we talk about the continuum of managed care we are referring to “clinical or operational improvements to the overall delivery of care.…

    • 663 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    In broad terms, any health care financing system has three goals: protect consumers against the financial risk of health expenditures; promote efficient levels and types of health care services; and to be fair to consumers and providers (CITE). The cost control strategy that embodies the three goals of health care finance is supply limitation. Supply constraints restrict the number of resources available to health care providers which in turn reduces cost and improves efficiency. As a scarcity exists it compels providers to allocate supplies and services more appropriately than they would otherwise. As a result, the patients who are truly in need are the ones that receive the treatment; efficiently allocating resources.…

    • 230 Words
    • 1 Pages
    Improved Essays
  • Great Essays

    Medicaid Expansion

    • 1438 Words
    • 6 Pages

    However, he agrees, that the ACA significantly increased funding for community health centers and that it made other provisions to improve access, although, he questions, if those provisions are enough to increase the amount of Medicaid providers needed (183). Some Missouri state legislators may agree with Antos? position that if the expansion is not free to the states, then it will be too costly for them to implement. Another common argument by opponents is that Medicaid needs to be ?fixed? first.…

    • 1438 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Managed care is moving to offer less restrictive managed care products. In addition, because consumers and purchasers prefer broad and stable networks that require plans to include rather than exclude providers, plans are seeking less contentious contractual relationships with physicians and hospitals. Finally, to the extent that these changes erode their ability to control costs, plans are shifting from an emphasis only on increasing market share to a renewed emphasis on protecting profitability. Consequently, purchasers and consumers face escalating health care costs under these changing…

    • 86 Words
    • 1 Pages
    Improved Essays
  • Improved Essays

    Costs should be controlled as spending as there is continued demand for insurance, increases fall on the consumer, limited health benefits from employers due to affordability, and taxes continue to be raised to offset the rising costs (Shi & Singh, 2015). People are always in need of health insurance and therefore insurance companies may take advantage of this. Employers are not able to afford to continued cost of insurance as premiums rise which reflect on consumers not being able to afford insurance as these increases fall on the employees. Taxes are continually increased to help mitigate the budget deficit. If these are not contained or another approach found to be better may slowly take a higher percentage of their wages which lowers the…

    • 692 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    The only cost control and care coordination for the managed care of the head is sold in the search for quick health savings. For decades, North Carolina has been using its own efficient, innovative management fee scheme to privatize the trend. The results of managed care, the predictability and accountability of the state's Medicare effect the budget. However, North Carolina's current Medicare program has exceeded…

    • 650 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    The American healthcare industry is a fluid industry. The healthcare industry is continuously changing, sometimes these changes are good and sometimes they are bad. These changes can be as large as enacting a federal law requiring all Americans to have a form of health insurance, or as small as a multibillion-dollar company giving out grants in order to help those who lack sufficient health insurance. One of these recent changes in particular has thrown the whole system into the spot light and under the microscope. Although some of these changes mange to slip under the radar.…

    • 775 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Patients Perceived Value

    • 534 Words
    • 3 Pages

    “There is a variety of interpretations of what is meant by patients’ value. For some it can mean low price, receiving what is desired, receiving quality for what is paid for, or receiving something in return for what is given. While, patients’ value to others may be patients perceived preference for and evaluation of attributes, attribute performances, and consequences. With these two definitions it is easy to infer, that patients value is either desired value or perceived value. Desired value refers to what patients desire in a product or service.…

    • 534 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    As of 2010 the majority of private and public payers have committed themselves to having their provider payments incorporate both quality of care and efficiency. (www.ajmc.com) In the United States, according to the article written in PubMed, “a number of communities are adopting a managed care approach to caring for the low-income and uninsured individuals”. These communities have a system that is studying their health and tracking their wellness programs of those communities. This will greatly improve and create a design to help ensure access to primary and preventative care for the low-income group.…

    • 1227 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Statistically, only twenty-eight percent of Americans are insured through government-funded programs such as Medicare and Medicaid, implemented in the middle 1960s. Medicare commonly insures older people with acute care needs. “Medicaid is the joint federal-state government-sponsored program that pays for health services for poor children, pregnant women, and mothers of young children as well as mentally and physically disabled and very poor elderly individuals” (Emanuel 36). The most recent attempt to maintain a current medical assistance problem was a new law widely known as Obamacare. President Obama signed the Affordable Care Act into law on the 23rd of March 2010, putting in place comprehensive reforms that are meant to improve access to affordable health coverage for everyone and protect consumers from unfair insurance company practices.…

    • 1634 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    The need to control healthcare cost remains a major goal of all stakeholders in the nation. The predicament Lake County Medical (LCM) finds itself in is typical with healthcare providers currently; declining Medicare reimbursement and an uptick in Medicare & Medicaid beneficiaries (Shi & Singh, 2015). An 11% decrease in reimbursement rate equating to $5.8 million reduction in revenue threatens LCM’s viability. The need for creativity is needed for this organization. Tactical objectives are a twofold; revenue-generating strategies and cost-cutting efforts (Herman, 2012).…

    • 788 Words
    • 4 Pages
    Improved Essays