Managed Care, Its History and Impact on the Current Us Healthcare Reforms

Topics: Health care, Managed care, Preferred provider organization Pages: 3 (921 words) Published: March 1, 2011
Managed Care
Managed care refers to a method of healthcare that strives to restructure health services, as well as ensuring cost-effective healthcare. This kind of care aims at ensuring a definite benchmark of care, extent of performance, and cost management. It guarantees this by ensuring a thorough supervision, monitoring, as well as counseling. Moreover, certain sorts of managed care programs aim to support members to live healthy by preventing diseases. Ideally, managed care covers partly or all costs accruing from healthcare services. Such programs normally have members who they advice to seek care from accredited providers (Lundy & Janes, 2009). However, some normally allow their members to seek services from other providers other than the registered. Consequently, provides outside the network wrap fewer costs. It is certain that managed care has faced some hiccups along the way; however, chief players have managed to counter such shortcomings for it to remain the preferred health care option for the majority. Managed health care traces its roots to 19th centaury when DR. Shadid Michael commenced a countryside farmer’s supportive health program in Oklahoma in 1929. He managed to catalog more than a few families who paid a predetermined charge to acquire services, despite strong antagonism from other physicians. In addition, in 1933 other doctors launched the provision of medical services for over 5,000 employees on a prepaid ground. Such providers obtained recompense from insurance corporations to cater for accidents since men were donating 5 cents from their earnings. Henry Kaiser later set some medical plans throughout World War II, but stepped up his services to cater for millions of Americans at affordable cost (Lundy & Janes, 2009). Ten years later, the Kaiser’s health plan had a mounting complex of hospitals and clinics. Numerous prepaid cluster practice plans extended in the 1940s, which later turn into precursors to the contemporary Health...
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