How does managed care do it?

@article{Cutler2000HowDM,
  title={How does managed care do it?},
  author={David M. Cutler and Mark B. McClellan and Joseph Newhouse},
  journal={The Rand journal of economics},
  year={2000},
  volume={31 3},
  pages={526-48}
}
Integrating the health services and insurance industries, as health maintenance organizations (HMOs) do, could lower expenditure by reducing either the quantity of services or unit price or both. We compare the treatment of heart disease in HMOs and traditional insurance plans using two datasets from Massachusetts. The nature of these health problems should minimize selection. HMOs have 30% to 40% lower expenditures than traditional plans. Both actual treatments and health outcomes differ… CONTINUE READING

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Integrating the health services and insurance industries , as health maintenance organizations ( HMOs ) do , could lower expenditure by reducing either the quantity of services or unit price or both .
Integrating the health services and insurance industries , as health maintenance organizations ( HMOs ) do , could lower expenditure by reducing either the quantity of services or unit price or both .
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