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Essay / Research Paper Abstract
A 4 page paper discussing some of the methods used by HMOs to control costs. Containment measures discussed include the use of member physicians; debate over the costs of preventive care; use of the “Gatekeeper;” and increasing patient copayments. Bibliography lists 4 sources.
Page Count:
4 pages (~225 words per page)
File: CC6_KShmoCostCont.rtf
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Unformatted sample text from the term paper:
of rising health care costs have been the bane of physicians, hospital administrators, employers and certainly the uninsured (or underinsured) for nearly three decades. Various measures have been enacted,
some with little or no effect; others have had only the effect of exacerbating the problem. Thankfully, the Clintons health care reform proposals were rejected when they were, as
they certainly could only have turned a bad situation into a living nightmare of exponentially-spiraling costs beginning at their already too-high level. What
we have tried, it seems, is everything except an approach that will work. HMOs now are listed as the responsible parties for 97 percent of all Americans who have
insurance coverage and are not covered through other means. The purpose here is to explore the methods HMOs use for containing costs. Early Success
As a percentage of gross national product (GNP), health care spending was 6 percent in 1965. That figure had risen to 14 percent of GNP by 1993
(Lindsey, 1993), even though GNP itself also had increased dramatically: by 1994, that percentage of GNP had increased to 15 percent and had topped the $1 trillion mark for
a total of more than $4,000 for every citizen of the country (Grumbach and Bodenheimer, 1994). Plagued by overspending for years, the general system also has been characterized by
underinclusion as well - in 1993, there were no less than 35 million Americans without health insurance coverage of any kind (Lindsey, 1993). A decade later, that figure has
more than doubled. The original federal legislation enabling the existence of HMOs was passed in 1973 (Ellwood, 2002). Some early HMOs such
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